2020 Sustainability Report Country Garden Holdings

2020 SUSTAINABILITY REPORT

COUNTRY GARDEN HOLDINGS 2020 Sustainability Report COMPANY LIMITED Incorporated in the Cayman Islands with limited liability （ Stock Code: 2007 ） Country Garden Holdings Company Limited Country Garden is a diversified technology company that creates a happy life for the world. TABLECountry Garden Holdings Company Limited OF CONTENTS Brief Introduction to the Report Reporting Scope Reporting Principles Reporting Process Information Sources Availability 01 02 ABOUT THE REPORT WHAT IS COUNTRY 001 GARDEN 003

07 08 09 CREDIBLE COUNTRY COUNTRY GARDEN THE COUNTRY GARDEN THE GARDEN-QUALITY GUARDIAN-GREEN COMPANION-ALWAYS FIRST PRODUCTION PUTTING THE PEOPLE FIRST 031 051 065

Feature “Solid Foundation Feature Living in a Green Feature Long-term Effective ｜｜｜ Initiative” for Better Quality- Environment - Harmonious Prevention and Control as the Higher Quality and Efficiency of Co-existence of People, City Foundation for Restoration of Safety Management and Nature Operation Craftsmanship Environment Management Moral Character as the Top Smart Innovation Sustainable Buildings Criteria for Recruiting Devoted Services Green Construction Respecting Professionals Win-win for All Green Operation Talent Development as a Priority Green Leasing Care for Employees Green Office Green Products Tackling Climate Change Biodiversity Protection 2020 Sustainability Report

Intelligent Robot Development Modern Agriculture Feature Country Garden’s Commitment｜ to Constantly 1+N BUSINESS Improving on Its ESG Management STRUCTURE-A Value Creation TRANSFORMATION OF Corporate Governance COUNTRY GARDEN LED Sustainable Development BY TECHNOLOGY Management 03 04 05 06 2020 ANNUAL RESPONSIBILITIES COUNTRY GARDEN IN RUNNING A TIGHT SHIP MESSAGE STATISTICS ATTENTION-TO-DETAIL 006 005 011 GOVERNANCE 013

10 11 APPENDIX I HONORS COUNTRY GARDEN OUTLOOK INTO APPENDIX II KPI OF SUSTAINABLE DEVELOPMENT GIVES BACK-SHARED 2021 LIST OF ENVIRONMENT-RELATED HARMONY PERFORMANCE INDICATORS 101 LIST OF SOCIETY-RELATED 085 PERFORMANCE INDICATORS APPENDIX III POLICIES, LAWS, AND REGULATIONS Feature Combating the COVID-19 ｜ Contributing to Poverty Relief APPENDIX IV INDEX OF HKEX ESG REPORTING GUIDE Effective Contribution to Rural Revitalization APPENDIX V GRI STANDARDS INDEX—CORE InvestingCharity and in the Social Community Services and Its OPTION Social Impact APPENDIX VI COMMENTS AND FEEDBACK Country Garden Holdings Company Limited

ABOUT THE REPORT

001 2020 Sustainability Report

BRIEF INTRODUCTION TO THE REPORT Country Garden Holdings Company Limited (hereinafter referred to as Country Gar- den, the Group or we) (SEHK: 2007) is pleased to issue its 12th Sustainability Report (hereinafter referred to as the report). Based on past sustainability reports, we hope to objectively disclose our vision, strategy and practice on sustainable development in a more comprehensive manner to increase stakeholder understanding and confidence in the Group and to continue enhancing our sustainability-related performance.

REPORTING SCOPE The report covers the period from January 1st to December 31st, 2020; however, some events occur earlier or end later than this period. The report discloses the main strategy and practice of Country Garden's sustainable development with respect to its overall business. The economic and social KPIs released in the report are developed based on the Group's overall business, while the environmental KPIs include data on hotel and commercial operation over and above the data on property development.

REPORTING PRINCIPLES This report is prepared as per the guidelines stipulated in the Environmental, Social and Governance Reporting Guide issued by The Stock Exchange of Hong Kong Limit- ed ("HKEX") (hereinafter referred to as ESG Reporting Guide) and take into consideration the Sustainability Reporting Standards issued by the Global Reporting Initiative (hereinafter referred to as GRI Standards) and Sustainable Development Goals from United Nations and Corporate Social Responsibility Guide for Guangdong Property Development Companies. A content index of the ESG Reporting Guide is provided as an appendix to this report to facilitate readability.

Following the initiative of the International Integrated Reporting Council, the report is consistent with the Group’s financial reports, and outlines the financial information to consistently present information on Country Garden’s financial and non-financial performance, enabling readers to have a more comprehensive view of our work. Unless otherwise stated, the currency used in this report is RMB.

REPORTING PROCESS The preparation of this report follows the above standards, including steps of peer benchmarking, business interview, field investigation, stakeholder communication, information collection, information verification, report collaboration and management approval.

INFORMATION SOURCES The information disclosed in this report originates from official documents, reports or public information of Country Garden and its affiliates. The Board of Directors is responsible for the truthfulness, accuracy and completeness of this report.

AVAILABILITY The report is available in Chinese and English and published in electronic format. In the event of any discrepancy between the Chinese and English versions of the report, the Chinese version shall prevail. Please visit our official website:www.countrygarden.com.cn or HKEX website: www.hkexnews.hk to download the electronic version of this report

002 Country Garden Holdings Company Limited

WHAT IS COUNTRY GARDEN?

COUNTRY GARDEN IS A DIVERSIFIED TECHNOLOGY COMPANY THAT CREATES A HAPPY LIFE FOR THE WORLD.

WE ARE COMMITTED TO ROBOTICS WE ARE ACTIVE SUPPORTERS OF MODERN AGRICULTURE AND RURAL Technology is advancing from day to day. In fact, the age of robots is already REVITALIZATION here. Country Garden is committed to scientific innovation. Our team is grow- We established Country Garden Agriculture to apply self-driving technologies ing by the day, particularly our team of top scientists. Today, we have over 200 to advance Chinese agriculture. It will help raise productivity and improve crop thousand employees, including more than 1,000 PhDs. Their combined brain- yields and quality. It is our contribution to the problem of feeding the world. power channels the power of science to craft better lives for all and to make China a more technologically advanced country. We also set up Bi You Xuan, a company that helps farmers set up high-quality crop and livestock sites with direct commercial links to urban markets. It We established Bright Dream Robotics to develop smart construction systems delivers a wide range of safe, tasty, reasonably priced produce straight from built around construction robots, prefabrication systems, and BIM. Bright the field to where urban shoppers live: services bringing a better life for every Dream Robotics is working to achieve the perfect marriage of safety, quality, Chinese family. speed, and economy, and is leading a revolution in the construction sector. Meanwhile, Bright Dream Robotics is also developing, manufacturing, and op- MAKE THE WORLD A BETTER PLACE FOR HAVING US IN IT erating robots for catering, healthcare, agriculture, and home services. For us, targeted poverty alleviation programs and rural revitalization are key We set up Qianxi Robotics to build the world’s most advanced robot restaurant. parts of our business. Country Garden and its founder have donated over 8.7 This is how we can offer our community food that is tasty, safe, nutritious, billion yuan to charitable causes. We are actively engaged in targeted poverty healthy, and reasonably priced and provide an entirely new dining experience relief and rural revitalization projects in 57 counties across 16 different prov- to the consumers. inces. These programs have helped lift 490,000 people out of poverty. Going forward, we will consolidate the progress in poverty alleviation and make our WE BUILD GOOD HOUSING AND GOOD COMMUNITIES contribution to rural rejuvenation.

Country Garden is committed to supporting China’s new urbanization process. Country Garden is a Fortune 500 company that has been publicly listed in Hong We bring true craft and care to the task of making homes that are safe, healthy, Kong since 2007 and is tracked as a component of the Hang Seng Index. We are attractive, economical, practical, and long-lasting. We provide good homes, also a major taxpayer: in the year 2020 alone, we contributed over 65.3 billion beautifully decorated, friendly green spaces for quality of life, comprehensive yuan in taxes. In Country Garden, ethics, corporate social responsibility, and local amenities, and thoughtful resident services. We have brought modern transparency are vital. Going forward, we are committed to being a force for living to over 1,400 towns around China, and more than 4.5 million people have human progress. chosen to make their homes in a Country Garden property. We are proud to have made an important contribution to the urbanization and modernization of COUNTRY GARDEN–FIVE-STAR LIVING FOR YOU our country.

003 2020 Sustainability Report

We have modernized over 1,400 towns in China

million homeowners have chosen to build their lives in more than 4.5 Country Garden developments

billion yuan has been donated Over 8.7 to charitable causes

We are actively engaged in targeted poverty relief and rural counties different revitalization projects in 57 across 16 provinces

These programs are people out of instrumental in lifting 490,000 poverty

004

Country Garden Holdings Company Limited 2020 ANNUAL MESSAGE

2020 was the year for China to accomplish its first sentinel goal of comprehen- fully leveraged in areas such as green construction, green buildings, green op- sively building China into a moderately well-off society. The year also turned eration and green office to achieve sustainable development and to contribute out to be quite extraordinary as the world was confronted with the COVID -19 to the global response to climate change and biodiversity protection. outbreaks. Country Garden joined the fight by setting up a fund of 200 million yuan to combat the disease along with donations of money and supplies. We GROWING WITH OUR EMPLOYEES also responded well to the nation’s calling to restore work and production and A great cause calls for a great force. Country Garden has always put employ- kept improving our own competitiveness along the way. ees front-and-center in our development. We strive to provide a professional platform for talent, and we highly focus on our recruiting and training mech- Joining the industry in its boom cycle, our long-term vision and prudent opera- anism. Initiatives like talent training, rotating positions, management trainee tion have rewarded us with consistent business growth. In the newly released and future leaders program provide everlasting impetus to the company. In 2020 Fortune Global 500 list, Country Garden secured the 147th place, a 30 po- the meantime, we care about the needs of our employees and support them to sitions’ jump from last year, making us the highest ranking property developer develop their own interests. We also devote a lot of resources to building a fair, on the list. inclusive, humane and energetic working environment for all employees.

GIVING BACK TO THE COMMUNITIES CRAFTSMANSHIP AND ATTENTIVE SERVICES Our heart and mind are always with our local communities. We are active- We have poured our hearts into our products and have been committed to ly engaged in targeted poverty relief and rural revitalization projects in 57 delivering products and services of the most premium quality to our clients. counties across 16 different provinces. We build commercial bridges between With safety and quality being the lifeline of Country Garden, we take full re- urban and rural areas as a contribution to the revitalization of rural China. sponsibility for our products’ quality and safety. A number of initiatives such as Through Guoqiang Foundation and our volunteer association, we went beyond “Strengthening the Foundation Movement” and the “Engineers’ Culture” were our means to make a contribution to environmental protection, the elderly and organized to optimize quality control systems and standardization. We were children’s care, and disaster relief and truly honored our commitments to CSR. born in the greatest of times. The company kept advancing with technological development and kept creating wonderful lifestyles through technology and PRESSING AHEAD WITHOUT FAINT OF HEART diversified operation. The construction robots invented by Country Garden are widely adopted in our project. Several robot diners were opened in cities in the We will be celebrating our 29th anniversary in 2021. Coming out of Shunde Greater Bay area. Manless farms are being experimented with and promoted. Guangzhou, everyone in Country Garden is still very mindful of our founding We are fully committed to leveraging the power of technology to contribute to principle, which is “be good to people, be good to society”. We are working with a better life for the society. In the meantime, we strictly implement the “cus- all stakeholders to consistently deliver high-quality products, thus making our tomer-centered” approach towards services. We listen to our customers and due contribution to national development and social progress. constantly improve on service quality to maximize customer satisfaction.

GREEN GUARDIAN FOR HARMONIOUS COEXISTENCE With the corporate culture of being ethical, responsible and transparent deeply embedded in our DNA, we have been actively engaged in sustainable development. Being green and eco-friendly has been our guiding principle when it comes to operation, and we have been relentless about minimizing our environmental impact and carbon emission. Our strength and resourcefulness are

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2020 Sustainability Report

RESPONSIBILITIES: 1+N BUSINESS STRUCTURE-A TRANSFORMATION OF COUNTRY GARDEN LED BY TECHNOLOGY

As science and innovation gradually trickle down through our entire group, “Better Technology, Better Life” has turned into one of our objectives. On top of exploring real estate development opportunities, we embarked on a transformation journey to become a diversified high-tech firm that creates a happy life for the society. Apart from our real estate business and the associated property management and hotel businesses, we are diverting more energy and resources to our robotics and modern agriculture segments.

INTELLIGENT ROBOT DEVELOPMENT Case study ｜ Exterior cleaning robot won the iF Design Award 2020 CONSTRUCTION ROBOTS As the leader in smart manufacturing for construction, Country Garden The exterior cleaning robot Bijing C200 successfully won the iF De- was the pioneer in China in terms of innovation in the construction method. sign Award 2020 in Germany, one of the top three design awards in the Through working with its subsidiary Bright Dream Robotics and employing the world. Based on the leading navigation technology of SLAM, the robot Robots+BIM+Prefabricated building model, Country Garden challenges the is able to circumvent obstacles and to complete the cleaning mission in industry’s thorny issues head-on and has made meaningful progress in site accordance with predetermined working route. The design maximized safety, project quality, efficiency and pollution reduction, giving the traditional the water efficiency and the areas covered per unit time. The color of industry a contemporary make over . the robot is white and the roundness in its shape gives out a clean and approachable vibe. Bijing 200, with all of the virtues it possesses, is We are constantly expanding our research team and have recruited many in- now recognized as a highly efficient and environment-friendly cleaning dustries and academic experts to drive upgrading and iteration of robots from robot for outdoor public areas. R&D and manufacturing angles. Our visionary deployment has yielded tangible results. In November 2020, 7 products of Bright Dream Robotics won the most influential and authoritative design award in China-the Red Star Award.

By the end of 2020, there had been By the end of 2020, there had been more than over 49 4,000 construction robots being de- R&D staff working at Bright Dream veloped in the pipeline of Bright Robotics. Average of staff is Dream Robotics covering all major construction procedures. 30.5 years

37 Over of the aforementioned robots are 25% being tested in the construction of the staff has a master’s sites. degree or above 190 employees have overseas Exterior cleaning robot won the IF Product Design Award studying experiences employees are Over 230 industry experts 006 Country Garden Holdings Company Limited

Case study ｜The first group of construction robot has been deployed to assist the implementation of Fengtong Garden Project

In September 2020, the first group of construction robots was delivered for the Fengtong Garden Project. The human- robot collaborative construction system developed by Bright dream Robotics was implemented in sync. By the end of 2020, more than 20 models of robots (including the ground leveling robot, indoor spraying and coating robot, floor tile paving robot) were enlisted in construction projects for testing with a total construction area of 300,000 sq.m. The concept of construction robots focuses on three key elements Traditional construction site with workers to maximize overall benefit: construction site safety, higher Concrete laying robot vs. construction sites with robots construction quality and higher efficiency.

COOKING ROBOTS Country Garden established Qianxi Robotics Group in 2019, a company driven by intelligent technologies, committed to applying advanced technologies and cultural propositions to diversified catering services. Always based on its independent R&D, the group has made robots as carriers to set a standard for catering services. It has also formed a whole-industry-chain system that covers production, supply chain as well as operation process, upgrading the industry and service of the catering industry.

Case｜Qianxi Robotics Group won the Gold Prize in the Guangdong Cup Industrial Design Competition

In the 2020 Guangdong Cup Industrial Design Competition, Qianxi Robotics Group won the Golden Prize for its project named Robotics Empowering the Catering Industry. The project showed how the group established an automatic production line powered by robots based on independent R&D, created a core supply chain, integrated an intellectual operation system, realized close-loop management of the whole industry chain consisting of supply, production and operation as well as expanded a brand new intelligent catering market.

Qianxi Robotics Group won the Gold Prize in the Guangdong Cup Industrial Design Competition

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Case｜R&D of robotics technologies in restaurant application scenarios

Qianxi group has invested in robotics technologies in restaurant application scenarios by pooling high-end professionals and has developed over 80 robotics devices and software systems that have been applied in multiple kinds of restaurants, including Chi- nese cuisine, hot pot, fast food, clay-pot rice, noodles, and spicy hotchpotch.

Cooking robot Clay-pot rice cooking robot

Qianxi Robotics is making every effort to establish the leading robotics restaurant chain in China and has now created six brands, including Foodom, Clay Pot Rice and Noodle Man. It is a lso building its own central kitchen and supply chain system for agriproducts featuring strict control of quality and whole-process tracing capability. The group is committed to providing healthy, delicious, convenient, affordable, and tech-empowered food for the whole society with the best ingredients and cooking techniques.

Case｜FOODOM Tianjiangmeishi Food Kingdom Robotics Restaurant was launched

As the flagship project of Qianxi Robotics Group, FOODOM Tianjiangmeishi Food Kingdom Robotics Restaurant is the world’s first independently developed restaurant complex that integrates gourmet, education, and technology. Occupying an area of nearly 2,000 sq.m, it can hold over 600 guests and offers nearly 200 types of dishes. With the collaboration of different types of robots, the restaurant can provide guests with rich experiences with safe and clean foods.

Guests scan QR code to Robots cook order foods dishes

Foods are delivered Robots deliver in a highly-efficient foods FOODOM Tianjiangmeishi Food Kingdom Robotics Restaurant manner

008 Country Garden Holdings Company Limited

MODERN AGRICULTURE

Country Garden is committed to developing modern agriculture as an important part of the company’s high-tech industries. It is aimed to establish a modern agriculture industry system that integrates smart seedling industry, security and food nutrition issues and to assist in improving people’s well- being.

DEVELOPING SMART SEEDLING INDUSTRY MODERN AGRICULTURE AGRI-TECH PARK

R&D, AND SERVICE

RESEARCH AND DEVELOPMENT AGRICULTURE HIGH-TECH PARK Science and technological research and development are the basis for devel- Combined with diversified ecological and environmental characteristics of oping modern agriculture. Country Garden has invested heavily in human and different places in China, Country Garden Agriculture cooperates with the financial resources to address hard biological and other technological issues local governments in bringing technology-empowered culture to everywhere while effectively commercializing the R&D results so as to apply them into in the country. In the meantime, we answer the call of the country by practicing the production of high-tech agricultural produces. In 2020, Country Garden modern agricultural development and improving farmers’ productivity and Agriculture managed to register six patents in Bifidobacterium adolescentis their income level so as to inject new vitality and dynamics into the country and its application, a molecular marker of rice’s appearance, the approach of area. In recent years, we have established the “Wuhan Hannan ‘China Seed direct PCR of millet's leaves, etc. Valley’”, Zhaoqing Agriculture Industry Park, Yunnan Baoshan Agriculture Industry Park, and many other quality projects. In 2020, Country Garden recruited a large number of front-end R&D personnel with rich experience, where 80 are from BGI Agriculture Institute, who carry out research on cutting-edge biological technologies, gene sequencing, etc.

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Baoshan Agriculture Industry Park - Crop rotation of Morchella and tobacco

｜ Case Baoshan Agriculture Industry Park

Covering an area of 560 mu, Baoshan Agritechnology Park is located at Longyang District of Baoshan city and is a crucial part of Longyang’s National Pasture Complex and the 10,000 Mu Agritourism Demonstration Zone. The positioning of the company is to become a integrated solution provider for agriculture in plateau area. With a focus on Yunnan’s edible fungus and precious herbs for medical use, we employed BGI’s agritechnology strength to cultivate quality fungus seeds and seedlings, solving the key problem in agriculture development through R&D. In the mean time, we also aim to be a good example of industrial development and become a driver of growth in a wider region. We are now building the brand of “BGI BAOSHAN”by leveraging existing brand advantage and market resources to expand the sales channels.

010 Country Garden Holdings Company Limited COUNTRY GARDEN IN STATISTICS

BUSINESS

Contracted sales attributable to shareholders(RMB) Growth (yoy) Geographic 570,660 3.3% coverage 1,350 MILLION RMB by the end of 2020 counties and towns

Contracted sales attributable Growth (yoy) to shareholders(sq.m) 67.33 8.0% 289 31 MILLION SQM cities provinces /autonomous regions / municipalities directly adminis- tered by the Central Government

FINANCE

GROSS MARGIN BUSINESS REVENUE 100.91 462.86 BN RMB BN RMB

PROFIT ATTRIBUTABLE TO NET PROFIT SHAREHOLDERS

35.02 54.12 BN RMB BN RMB

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SOCIETY

NUMBER OF EMPLOYEES SAFETY TRAINING COVERAGE 93,899 100%

NUMBER OF PATENTS + NUMBER OF SUPPLIERS AUTHORIZED DONATIONS

24,238 1,276 8,700 MILLION RMB

ENVIRONMENT

Number of projects con- Number of projects con- Number of sponge city Energy saved due to renovation of Quantity of rubbish structed according to na- structed according to projects outdated lighting facilities by the hotel classified in the En- tional green building stan- LEED standards in 2020 management group in 2020 vironmental Protec- dards in 2020 tion Program

64 6 111 6,000 kWh 1,095 TONS 12.42 39,454 7.7682 85% MILLION SQUARE SQUARE METERS MILLION SQUARE of all lighting facilities METERS METERS have been renovated

012 Country Garden Holdings Company Limited

RUNNING A TIGHT SHIP

ATTENTION-TO-DETAIL 06 GOVERNANCE

Feature｜Country Garden’s Com- 015 mitment to Constantly Improving on Its ESG Management Value Creation 016 Corporate Governance 017 Sustainable Development Man- 023 agement

OVERVIEW

Mindful of the Group’s strategy of elevating overall competitiveness for lasting success, Country Garden continues to consolidate its corporate governance to drive the sustainable development of the company. With the objective of building a business that is able to thrive for the next centuries to come, we are committed to creating a transparent and credible corporate culture and to building a sound corporate governance and compliance system, which enables prudent risk management to safeguard the company’s stable development. In the meantime, we actively incorporate sustainable development goals into our corporate strategies and operation. We have been optimizing the sustainable development governance framework, listening to stakeholders, and working together with the whole society to create better communities.

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TOPICS DISCUSSED IN THIS CHAPTER

SUSTAINABLE DEVELOPMENT SDGs DISCUSSED IN TOPICS DISCUSSED IN THIS THIS CHAPTER CHAPTER

GOOD HEALTH DECENT WORK INDUSTRY, RESPONSIBLE Compliance and clean governance A ND WELL- AND ECONOMIC INNOVATION AND CONSUMPTION IPR protection 3 BEING 8 GROWTH 9 INFRASTRUCTURE 12 AND PRODUCTION Setting sustainable development goals Operating performance and investor’s interest Communications with stakeholders Risk management Industrial development

014 Country Garden Holdings Company Limited

FEATURE ｜ COUNTRY GARDEN’S COMMITMENT TO CONSTANTLY IMPROVING ITS ESG MANAGEMENT

COUNTRY GARDEN ESTABLISHED AN ESG DATA MANAGEMENT PLATFORM TO EXPEDITE THE DIGITAL TRANSFORMATION OF CORPORATE GOVERNANCE As requirements on Environment, Society and Governance (“ESG”)information disclosure are getting increasingly strict, Country Garden has constantly improved on its sustainable development management in order to respond to the ongoing attention by regulators, the capital market and other stakeholders over information disclosure. To this end, we follow the trend of digital transformation of sustainable development by pooling resources to establish an ESG data collection platform, where the data of ESG indicators collected offline is relocated to the online platform so as to improve the company’s sustainable development management. Online data collection platform WITH THE ONLINE ESG DATA PLATFORM, WE ARE ABLE TO IM- PROVE OUR WORK IN THE FOLLOWING THREE WAYS: COUNTRY GARDEN PUSHES FOR REGULAR SUSTAINABLE We enlist all data required for sustainable development management, clar- MANAGEMENT TRAINING SESSIONS BY HOLDING ESG ify the standard, content, and procedures of statistics and implement the data MANAGEMENT EXCHANGE CAMPAIGNS EVERY YEAR management responsibility in a top-down manner from the corporate head- Country Garden constantly improves its corporate governance. Throughout its quarters to specific projects; course to realize sustainable management, the company has invited external By introducing a top-down systemic and standardized management ap- professionals to conduct exchange campaigns on sustainable management so proach, we managed to improve the authenticity, timeliness, and traceability of as to raise awareness within the company. data in a bid to ensure truthful, complete, and accurate data disclosure; We provide sustainable corporate governance with support in the form of In August 2020, in collaboration with Sina Finance, we invited a number of high-quality data so as to effectively respond to the expectations and concerns heavyweight professionals in ESG field for a three-day training session on of stakeholders. ESG management. By case analysis on ESG and how ESG ideas are applied in specific cases in sustainable management, the training session gave clear In order to establish a science-based, highly-efficient data management plat- direction for sustainable management in the future. form, we launched the project from a high-level starting point. At the very early stage in the establishment of the platform, we have listened to the opinions of all units that generate the data as well as external professionals. In addition, after the official launch of the platform, we have invited professionals to conduct special training sessions for all staff, including executives, so as to make sure that the data management platform is fully integrated into the daily management of the company in a highly efficient manner. In December 2020, the platform was officially up and running to collect ESG environment data across the group. In the future, we will further optimize the platform by including more ESG indicators as well as expanding the scope of statistics so as to realize the digital management of all the ESG data.

The 2020 Country Garden ESG and sustainable management training 015 2020 Sustainability Report

market’s understanding of the company and win investors’ trust and broad VALUE CREATION support. In the meanwhile, we have also set up a dedicated team in charge of investor relations management to conclude and analyze the dynamics of the capital market in a timely manner and deliver feedback of information to the OPERATING PERFORMANCE management team in a systematic way.

The year 2020 has turned out to be an extraordinary one. Faced with challenges posed by the COVID-19 and complicated market situation, Country Garden fought as a whole and accomplished fruitful results by tackling all difficulties. MULTI-CHANNEL

In September 2020, due to sound operation and prudent financial management, Conduct intensive multi-channel communication through the network, the company was highly recognized by rating agencies. Moody’s upgraded the field study, meetings, etc. to meet the requirements of shareholders ratings of both the company and its high-level unsecured bonds to investment and investors in real-time. grade. S&P has also raised its rating outlook on the company’s long-term corporate credit rating to positive. The two accomplishments made Country Garden one of the few companies that achieved upgrades in ratings against the adverse backdrop of the COVID-19, a vindication of Country Garden’s leading position, sound performance track record as well as prudent financial man- GREATER INFORMATION DISCLOSURE agement strategy in the real estate industry. Create the Investor Relations section on our official website to better communicate with shareholders. We improved monthly corporate communication and performance presentation, and delivered more In 2020, Country detailed categories of information that are presented. Garden ranked In 2020, Moody’s upgraded 147th the ratings of the company’s among the bond issuer and high-level global Fortune companies unsecured bonds to “Baa3/ 500 Stable” of investment-grade RESPOND TO INQUIRIES ON ESG positions higher 30 than that of 2019 Organize activities including staff meetings, reverse roadshows In 2020, S&P raised its rat- andexecutive exchanges; participate in roadshows of many financial among real estate ing outlook on the compa- institutions in the Asia Pacific and Europe. companies on the ranking ny’s long-term corporate No. 1 list credit rating to positive

RESPOND TO INQUIRIES ON ESG

TRANSPARENT OPERATION Actively answer ESG questions from investors both at home and abroad, explaining to them the latest status of company governance and EHS management while improving our own ESG system. Country Garden has always attached great importance to the voice of shareholders and capital markets. We are always committed to continuously improving information transparency by setting up communication channels with our global investors both online and offline.

PROTECT INVESTORS' EQUITY In 2020, Country Garden participated in Under the principle of authenticity, reliability, and completeness, the company investor exchange activities organized by mainstream domestic and managed to disclose operation performances, development strategies, most 26 international seller agencies updated information on the businesses as well as sustainable development. We have constantly improved information transparency to enhance the capital

016 Country Garden Holdings Company Limited

In order to strengthen the function of the board of directors, seven committees CORPORATE GOVERNANCE were set up, namely Finance Committee, Executive Committee, Audit Commit- tee, Remuneration Committee, Nomination Committee, Corporate Governance Committee, and the ESG Committee.

COMPLIANCE For more details about Country Garden’s board and committees, please refer to the Corporate Governance Report in the 2020 Annual Report.

In accordance with relevant laws and regulations in Hong Kong, Mainland China and Cayman Island as well as the rules and requirements of The Stock DIVERSIFIED BOARD OF DIRECTORS Exchange of Hong Kong Limited and the company's Articles of Association, Country Garden has adopted a board diversity policy. The following factors are Country Garden constantly improves on its compliance structure and considered in the selection of board members, including but not limited to gen- governance. The company focuses on developing and maintaining quality der, age, culture, ethnicity, education background, skills, knowledge, profes- Board of Directors, exercising strict risk management and internal control sional experience and other related factors from time to time. With their differ- as well as accountability and transparency for shareholders. Both the Board ent opinions, experience, and perspectives, the directors will help the group to and the management of Country Garden abide by well-designed corporate better cope with complex environments and achieve balanced and sustainable governance rules with an aim for prudent management and value creation corporate development. for shareholders. The company also keeps optimizing the management of information disclosure to strengthen internal governance and regulate operations.

In 2020, Country Garden strictly implemented all of its existing corporate As of the end of governance policies to ensure all the decisions making were based on trust 2020, the board has 13 members 2 female directors and fairness and were disclosed in an open and transparent manner to protect the interest of all shareholders, particularly the minority shareholders. including 7 executive directors years of average tenure For more details about Country Garden’s work on compliance, please refer to 10 the Corporate Governance Report in the 2020 Annual Report. 1 non-executive director independent non-executive independent non- directors with experience executive directors RESPONSIBILITIES OF THE BOARD 5 2 inside the industry

The board of directors is responsible for leading and monitoring the group, and its members steer and supervise the management of the group affairs. As the highest governance body, the board is responsible for the overall governance, supervision, and regular review of Country Garden’s business so as to bring RISK MANAGEMENT long-term benefits to the stakeholders. We regularly convene board meetings to evaluate and consider proposed transactions, and to review and approve the company’s interim and annual results. RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM Since its establishment, the company has always attached great importance to risk management and internal control. The board of directors is responsible for maintaining robust and effective risk management and internal control system, and the Risk Management and Internal Audit Department is authorized to ensure and maintain robust risk management and internal control system. The In 2020, Country The average rate of attendance group’s risk management and internal control systems were developed based Garden convened for board meetings was on the Internal Control-Integrated Framework issued by COSO to guarantee board the continuous improvement of the group's risk management capabilities and 10 meetings 98% the level of internal control efforts.

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RISK MANAGEMENT FRAMEWORK RISK MANAGEMENT SOUNDNESS ASSURANCE AND SUPERVI- In order to enhance and continuously improve the effectiveness of the system, SION MECHANISM the group has established a risk management framework consisting of Inter- There are three main components of Country Garden’s Risk management sound- nal Committee of Risk Management, Risk Management Execution Body, and ness assurance and supervision system. First, the overall risk management Risk Management Monitoring Body to ensure proper operation of the “deci- system. The Group’s executives work together with external risk management sion-execution-supervision” mechanism from the group level to all business experts on a regular basis to identify major risks that potentially have group-level processes. impact and to follow up and review preparedness plans, implementation status as well as operational soundness. Second,self-evaluation system for internal control. Management both at the group’s level and at the subsidiaries’ level COUNTRY GARDEN'S RISK- periodically carries out self-evaluation on internal control over key business MANAGEMENT FRAMEWORK processes, which enhances the staff’s risk awareness and capability to identify internal loopholes. Third, the internal audit system. The risk management and DECISION MAKING BODY audit department organizes a variety of internal audits, which include: special audit, internal audit, operation audit, economic accountability audit, and information system audit. The department identifies risk management loopholes, exercises Risk Management Internal Committee systematic control and implement rectification measures in a timely fashion. The three key components reinforce each other with significant positive impact on efficiency and effectiveness of the risk management soundness assurance and supervision system. EXECUTION BODY SUPERVISION BODY

Management at the Group's Headquarters Management at the Subsidiaries of the Group HQ Risk Management Department COUNTRY GARDEN'S FRAMEWORK ON RISK-MANAGEMENT, QUALITY CONTROL AND SUPERVISION SYSTEM

RISK MANAGEMENT SYSTEM Country Garden’s risk management system is based upon the theory of three lines of defence, which encompasses internal control over business processes and activities (front-line control) , headquarter risk management mechanism and systematic control as well as risk management soundness assurance and supervision(internal audit and independent supervision). OVERALL RISK MANAGEMENT SYSTEM RISK MANAGEMENT MECHANISM AT THE HEADQUARTERS

FIRSTLINE OF DEFENCE-BUSINESS UNITS Internal control mechanism over business processes and activities

SELF-EVALUATION SECOND LINE OF DEFENCE- INTERNAL AUDIT SYSTEM ON SYSTEM HEADQUARTERS RISK MANAGEMENT INTERNAL CONTROL

Risk management at the Group’s level

THIRD LINE OF DEFENCE-INTERNAL AUDIT DEPARTMENT

Risk management quality assurance and

supervision mechanism 018 Country Garden Holdings Company Limited

OVERALL RISK MANAGEMENT SYSTEM Country Garden continuously optimizes the group's overall risk management system, and the main measures include: Gradually build a key risk index matrix covering the company level, the BUs level and business processes; constantly improve on the ability of the system to identify risks and issue alerts in a dynamic, digital and visualized manner; Sensitivity analysis and stress tests are carried out to respond to extreme and extraordinary risks; sensitivity and stress tests on financial risks associated with exchange rates and interest rates, operational risks regarding profitability, equity and liquidity, as well as climate change risks are carried out to evaluate the group's resilience under pressure; Focusing on the impact of emerging risks on the business of the group, ESG risks and climate change risks in the real estate market have been identified as the most significant long-term emerging risks affecting the future business; corresponding mitigation measures have been formulated;

For details of Country Garden's risk management, please refer to the 2020 Corporate Governance Report.

COUNTERMEASURES POTENTIAL RISKS AND THEIR IMPACTS We actively develop smart industries so as to reduce greenhouse gas emissions during corporate operation as much as Country Garden have identified possible. the negative impacts of climate change, including global warming and high frequency of flood; We have formulated a series of emer- the assets and properties that gency plans applicable for properties, can potentially be affected by ex- including Emergency Plan on Bio-hazard treme weather are also analyzed and Emergency Plan on Flood.

We are committed to realizing the carbon-neutral goal and to formulating a science-based carbon emission cut goal.

Environmental, social and governance risk is one of the more important risk SELF-EVALUATION SYSTEM ON INTERNAL CONTROL categories of Country Garden Group's comprehensive risk management sys- Since 2015, Country Garden has been carrying out self-evaluation on effective- tem.The identified key ESG risks include bribery, corruption, business ethics, ness of internal process control (referred to as internal control self-evaluation) product quality and safety, occupational health and safety, climate change, at least twice a year. An "integrated risk management" information system has etc., which have been incorporated into the regular risk assessment and moni- been established to support the efficient operation of this mechanism which toring process. fully covers all the key BUs and organizations at all levels of the real estate sector. A culture of internal accountability by all has come into shape. In 2020, The risk management and audit department of the group also regularly iden- the group optimized the internal control self-evaluation system with a focus on tifies and evaluates major risks at the group level in the form of discussions self inspection and self correction at key risk control points, and successfully among management, data analysis and questionnaire survey, which are done improved the efficiency and effectiveness of internal control self-evaluation. in combination with industry risks, policy changes, the group’s strategic adjustment as well as risk events. The risk-oriented internal audit plan will be formulated accordingly to check the effectiveness against countermeasures implemented in response to relevant risk events.

019 THE FRAMEWORK OF INTERNAL CONTROL SELF-EVALUATION AT 2020 Sustainability Report COUNTRY GARDEN

Develop self-evaluation strategy DEVELOP Appointing self-evaluation coordinating department + chief coordinator INTERNAL CON- SELF-EVALUATION TROL LEADS STRATEGY Reviewing the Internal Control Self-evaluation Report TOP LEADERSHIP Monitoring the effect of rectifications OF THE SUBSID- IARIES COORDINATING THE IMPLE- Ensuring smooth communication between the group and BUs MENTATION OF SELF-EVAL- at the subsidiaries UATION STRATEGY ON THE Implementing internal self-evaluation training sessions INTERNAL CONTROL COORDINATOR GROUND DESIGNATED PERSONNEL AT THE Assigning self-evaluation tasks + monitoring the progress SUBSIDIARIES

RESPONSIBLE FOR THE Organizing tests on HQ departments / BUs QUALITY OF SELF-EVALUA- INTERNAL CONTROL ENFORCEMENT Filling in the Loophole Summary Form, analyzing the DEPARTMENT HEADS AT THE SUBSIDIARIES TION AT HQ DEPARTMENTS / BUS causes and formulating rectification plans Follow-up of rectification measures as planned INTERNAL AUDIT SYSTEM Since the establishment of audit department in 2000, Country Garden has been developing and improving its internal audit system. Since 2014, the group has further strengthened the supervision function of the risk management arm, improved the organizational capacity of internal audit and implemented risk-oriented internal audit mechanism. Our audit work has come a long way from primarily internal-driven to a model that allows audit of multiple types being carried out in synch with exploration into auditing in digitized format. In 2020, the group's internal audit focused on identifying systematic problems at the group level and enforcing rectification. Our effort led to the establishment and optimization of control mechanism at the group level and at key business processes and systems level. Economic responsibility audit was introduced on key positions to promote the implementation of the accountability mechanism of the group. Key audit types include:

Special audit: focusing on major risks at the group level; identifying sys- Internal control audit: covering high-risk business segments and pro- tematic management and control loopholes in business processes at the cesses, evaluating the soundness of internal process control at the sub- group level; sidiaries; Operation audit: identifying the risks and major internal control loop- Information system audit: identifying the risks within the general control holes that affect the operational efficiency of the subsidiaries; process of the group’s information system and core application system; Economic responsibility audit: evaluating the economic accountability of personnel in key positions;

INTERNAL AUDIT FRAMEWORK OF COUNTRY GARDEN STRATEGIC OBJECTIVES OF THE COMPANY

Whether the decision-making chain DECISION MAKING Reviewing the value created is well-designed and whether the AUDIT by the strategic chain evidence supporting the decision- making rationale is sufficient

How to use technical means to Diagnosing business pro- improve efficiency of systems cesses and proposing inte- PROBLEM EFFICIENCY AUDIT TARGET and processes grated solutions

Identifying and analyzing the causes How to ensure 100% lawful practice of malpractices/ loopholes/conflicting of the company and how to prevent COMPLIANCE AUDITING points/ missing links as well as imple- compliance loopholes menting effective countermeasures

INTERNAL CONTROL AUDIT ECONOMIC RESPONSIBILITY AUDIT SPECIAL AUDIT OPERATION AUDIT INFORMATION SYSTEM AUDIT 020 Country Garden Holdings Company Limited

ETHICS

ANTI-CORRUPTION AND ANTI-FRAUD atmosphere", "clean root" and so on, and advocated all Country Garden people Real estate business is capital intensive and there are many aspects within to "aim for the long term and follow the right path", maintain a positive and corporate operation and project operation that could give rise to corruption enterprising attitude, and strive to make a living with clear conscience. The and fraud. Country Garden has always championed anti-corruption and anti- group also awarded banners and medals to the "sunshine units" selected fraud effort. We adhered to the strategy of "punishment and prevention goes annually. Managements of the group are organized to watch the integrity hand in hand with prevention being the key", and gradually established the education micro films together. Clean corporate governance lectures are also triple-prone governance system that is based on deterrence, institutional held on a regular basis etc. framework and culture.

THE DETERRENCE MECHANISM TO DISINCENTIVIZE CORRUPTION Since the establishment of the group’s supervision and inspection department in 2008, Country Garden has made dedicate effort to develop and optimize its supervision and inspection system. Through ongoing investigation and punishment of potential corruption and fraud, a deterrent force that Chairman's inscription disincentivizes corruption has taken shape within the group.

The Group continues to improve the mechanism of monitoring and reporting, In 2020, the group continued to strength- and encourages employees and partners to monitor and report potential en the construction of integrity culture, fraud and corruption in business operations and business activities by emphasized that the core management setting up a number of reporting channels which include public reporting should set an example, and organized all mailbox, reporting hotline and reporting handling office. Strict measures are members to sign the letter of commit- implemented to protect the personal information and privacy the informants. ment of "integrity self discipline".

MECHANISMS THAT LEAVES NO LOOPHOLE FOR CORRUPTION In 2020, focusing on the concept of clean corporate culture, the group built Country Garden has formulated and instituted a series of anti-corruption the "Country Garden Sunshine Index and anti-fraud mechanisms, such as the manual of internal control, audit Evaluation System" on its own initiati and supervision, the regulations on conflicts of interest of employees of ve. Through questionnaires, data col- Country Garden, the Code of Conduct of Employees at Country Garden, and lection and independent appraisals, the accountability measures for violations of regulations and disciplines by the group evaluated the integrity risk employees at Country Garden. The latest version of the mechanism defines 140 management and control over its prohibited behaviors in 14 categories, such as employee conflict of interest, subsidiaries, and issued the "Country bribery and embezzlement, and puts forward corresponding punishment Garden Group Sunshine Index White standards. Paper" to guide its subsidiaries to continuously strengthen the clean corpo- In addition, the anti-corruption and anti-fraud mechanism of Country Garden rate governance culture, pay attention also covers supply chain management, and has clear requirements for major to compliance risks, and constantly business partners. When signing procurement contract, construction contract, improve the soundness of internal project cooperation agreement and other contracts with external units, we control. require all the counterparties to sign clean cooperation agreement at the same self discipline and clean corporate time to jointly maintain clean and healthy business environment. governance

BUILDING A CLEAN CULTURE Country Garden group takes the value of "being a transparent corporate citizen with clear conscience and sense of social responsibility" close to our heart as we always adhere to the philosophy of doing business in the sunlight. 12 online courses on anti-corruption policies are developed Since 2015, the group has organized the sunshine culture festival every July to continuously inspire transparency and has created a clean culture within clean governance training sessions were organized for regional the company. In every sunshine culture festival, the founder Mr. Yeung Kwok 22 offices and BUs Keung personally wrote his inscriptions, such as "clean breeze and healthy

021 2020 Sustainability Report

LEADERSHIP AND COMMIT- COUNTRY GARDEN SUNSHINE INDEX EVALUATION SYSTEM Operation and maintenance MENT Soundness of internal control Attention and commitment from the Quality of self evaluation on internal control management Awareness and recognition of clean corporate governance culture among the PREVENTION AND IMPROVEMENT SUNSHINE INDEX staff Coverage and effectiveness of publicity and EVALUATION SYSTEM implementation of clean corporate gover- DESIGN AND ARCHITECTURE nance culture Reasonable organizational structure Timeliness and effectiveness of the rectifi- Integrity of the system cation of internal control loopholes

10% TRAINING AND PROCESSES 10% 30% Coverage and effectiveness of compliance training

30% In 2020.the number of corruption, bribery, extortion, fraud and money launder- 20% ing cases within Country Garden was zero.

IPR PROTECTION

Country Garden put great emphasis on IPR management. We respect relevant 2020, Country Garden and its subsidiaries have seen fruitful achievements in laws and regulations, including Patent Law, Trademark Law, Copyright Law, IPR filing and registration. Anti-Unfair Competition Law of the People's Republic of China, and the Regula- tions on the Protection of Computer Software, in a bid to defend our own legit- In addition, Country Garden supports industrial efforts to regulate IPR pro- imate rights and interests as well as respect the IPR of our partners. Country tection. Some of our subsidiaries have joined the Guangdong IP Protection Garden attaches importance to IPR protection. Through coordinated efforts in Association and Foshan Intellectual Property Association to protect research achievements together with our partners.

Country Garden's Achievements on Intellectual Property in 2020

PATENT TRADEMARK COPYRIGHT NEW PLANT

PENDING GRANTED PENDING REGISTERED REGISTRATION PENDING GRANTED Headquarters / / 1,005 718 14 / /

Bright Dream Robotics (subsidiaries included) 2,374 801 1,070 415 51 / /

Foodom / / (subsidiaries included) 796 339 236 94 30

Country Garden Agri-

culture (subsidiaries 267 156 72 53 3 19 19 included)

022 Country Garden Holdings Company Limited

SUSTAINABLE DEVELOPMENT MANAGEMENT

SUSTAINABLE DEVELOPMENT ORIENTATION

Country Garden makes continuous efforts to popularize the concept of sustainable development. We are committed to the sustainable development path, the long- term cause for the Group. To this end, we have been strengthening self-monitoring and implementing corporate social responsibilities, which include:

Elevating sustainable development Integrating with the busi- Setting up sustainable development policies to the Group’s strategic level and ness and launching various step by step and ensuring the implemen- incorporating it into the operation activities of sustainable tation of sustainable development concept development plan development throughout the whole value chain

SUSTAINABLE DEVELOPMENT VISION Make the world a better place for having us in it. SUSTAINABLE DEVELOPMENT MISSION Maintaining and increasing the Groups’ long-term economic, ecological and social capital to achieve sustainable development Managing and handling the associated risks properly with sustainable development

SUSTAINABLE DEVELOPMENT GOVERNANCE STRUCTURE

REINFORCING THE PARTICIPATION OF THE BOD Country Garden attaches great importance to sustainable development. We development and seeking lasting value for the group's development as well have established the governance structure of sustainable development con- as for the stakeholders. Second, we established a mechanism for sustainable sisting of board committees, management departments, and business units. development information exchanges and disclosure to timely disclose credible First, the board is responsible for ESG risk management and information information in response to regulatory requirements and shareholders' expec- disclosure, making overall policies on sustainable development governance, tations. Third, sustainable development governance is supervised at all levels, and supervising their implementation. The ESG committee makes plans ac- covering every stage from policy-making and communication to execution. cording to demands and organizes meetings concerning the promotion of sustainable development, thus enhancing the Group's endeavor of sustainable

023 2020 Sustainability Report

SUSTAINABLE DEVELOPMENT GOVERNANCE STRUCTURE

FUNCTIONAL CENTERS

IMPLEMENTATION BOARD OF ESG ESG WORKING ESG WORKING LEVEL DIRECTORS COMMITTEE COMMITTEE GROUP REPRESENTATIVES OF SUBSIDIARIES DECISION MANAGEMENT MAKERS LEVEL TOP DECISION MAKERS COORDINATION LEVEL IMPLEMENTATION LEVEL

ESG COMMITTEE ESG Committee is a newly established committee set up in May 2020. According to the terms of reference of the committee, as was defined in writing, there are three executive directors and three independent non-executive directors in the committee, mainly responsible for formulating the Group's strategies and policies on the ESG subject, strengthening communication between the Group and stakeholders, as well as identifying risks and opportunities related to ESG.

By the end of December 31st 2020, the ESG committee had conveyed two meetings.

MEMBERS OF THE ESG COMMITTEE

YEUNG KWOK KEUNG

Chairman of the ESG Committee/Executive Director

YANG HUIYAN MO BIN LAI MING, JOSEPH SHEK LAI HIM, ABRAHAM TONG WUI TUNG

Executive Director Independent Non-Executive Director

ESG WORKING COMMITTEE Country Garden sets up the ESG Working Committee subordinated to the ESG ening the management capacity and preparedness for risks associated with Committee. It is chaired by Mr. MO Bin, President of the Group, who is respon- environment and society. The working group of ESG Working Committee is the sible for the overall affairs of the ESG Working Committee. In 2020, Country routine office that is responsible for the preparation of meetings and the im- Garden revised and updated the Regulations of ESG Working Committee of plementation of related resolutions of the ESG Working Committee. Country Garden, specifying the responsibilities and rules of procedure of ESG Working Committee. It also offers guidance for improving the research and strategic planning of the Group’s sustainable development and for strength- 024 Country Garden Holdings Company Limited

SUPPORTING THE SDGS OF THE UNITED NATIONS

Global Compact, a framework initiated by the United Nations, aims to mobilize Our sustainable development goals, in accordance with the Global Compact, responsible and innovative companies to support social sustainability for the Country Garden strives to create value for stakeholders in five areas -- prod- benefit of all. As a member of the Compact, Country Garden puts the ten prin- uct responsibility, environment responsibility, talent responsibility, partner- ciples of four areas -- human rights, labor, environment, and anti-corruption -- ship responsibility, and community responsibility. In the year 2020, we remain into practice to show our responsibility for society. committed to our goals and stay true to our founding vision. We are dedicated to fulfilling our corporate social responsibilities and promoting the sustainable development of the Country Garden Brand.

SUSTAINABLE DEVELOPMENT SCOPE SDGS OF REFERENCE MID-TO-LONG TERM GOALS ACTIONS PROGRESS IN 2020 RESPONSI- Building products that are Customer satisfaction Country Garden actively pur- BLE FOR OUR GOOD HEALTH AND INDUSTRY,INNOVATION model homes with sound survey sues safe and civilized con- 3 WELL-BEING 9 AND INFRASTRUCTURE PRODUCTS processes; providing smart, Strengthening intellec- struction sites and has won 935 convenient, and warm tual property manage- awards in these regards products and services via ment industrial crossovers and Marketing compliance Customer satisfaction survey diversification audit suggests an 18-point bump RESPONSIBLE Supplier evaluation cri- from the 2019's level 12 CONSUMPTION AND PRODUCTION teria Supplier management system Supplier communication

RESPONSIBLE AFFORDABLE AND SUSTAINABLE With building habitable Vigorously develop green The green buildings built by 7 CLEAN ENERGY 11 CITIES AND FOR OUR ENVI- COMMUNITIS homes as the objective, building Country Garden won 70 certifi- RONMENT we aim to build green Promoting green con- cates with a total construction architectures and green struction area of 12.455 million sq.m communities, leading the Practice green operation industry in green devel- Tackling climate change Technologies on alternative ener- CLIMATE opment and upgrading Pay attention to biodi- gy and internal energy conserva- 13 ACTION 15 LIFE ON LAND versity protection tion mechanism are leveraged to enhance water and energy saving

RESPONSIBLE NO GOOD HEALTH AND Being a transparent com- Respond to national tar- Country Garden has donated FOR OUR COM- 1 POVERTY 3 WELL-BEING pany with a sense of re- geted poverty relief 8.7 billion Yuan to China and has MUNITIES sponsibility for society, we Organizing public dona- helped lift 490,000 people out of will play to our strength to tion poverty give back to the commu- Volunteer activities nities, to address poverty Education on charity In 2020, Country Garden de-

QUALITY and to solve social prob- Co-organizing sports ac- veloped multiple rent control 4 EDUCATION lems, achieving win-win tivities for public interest apartments for talents with a to- results Care for vulnerable groups tal construction area of 180, 000 sq.m

025 2020 Sustainability Report

SUSTAINABLE DEVELOPMENT SCOPE SDGS OF REFERENCE MID-TO-LONG TERM GOALS ACTIONS PROGRESS IN 2020

RESPONSIBLE Sustainable development Equal employment Multiple influential employer GENDER DECENT WORK AND FOR OUR EM- 5 EQUALITY 8 ECONOMIC GROWTH being integrated into cor- Elimination of Occupa- brand activities were created PLOYEES porate governance and tional Discrimination business development to Make employee training In 2020, the Youfu platform was realize long-term, stable plan launched and healthy growth; in- Multiple career develop- centivizing staff to create ment channels REDUCED RESPONSIBLE 10 INEQUALITIES 12 CONSUMPTION AND greater value Well-designed salary sys- PRODUCTION tem Occupational safety and health training Occupational safety and health guarantee

RESPONSI- pioneer of the nation’s new Evaluation standards Country Garden values the com- PARTNERSHIPS BLE FOR OUR 17 FOR THE GOALS urbanization; leveraging on suppliers pliance across the supply chain PARTNERS technologies to drive indus- Management system of and has organized eight nation trial growth and create a suppliers wide material sample tests, smart and diversified eco- Communication with covering 104 regions; the pass system suppliers rate is 97.69%

Country Garden aligned itself with universities to carry out R&D collaboration on construction robots and smart manufacturing

COMMUNICATION WITH STAKEHOLDERS

Country Garden believes that cooperation with stakeholders can give continuous impetus to its transformation. Therefore, a real-time, long-term, and efficient communication mechanism has been established with different channels to understand the needs and expectations of stakeholders and society. The company thus can respond to them with concrete actions.

STAKEHOLDERS EXPECTATION AND DEMANDS COMMUNICATION AND RESPONSE METHODS

Protection of rights and interests Employee’s feedback Health and safety Care for the employees’ events Staff Promotion and development Employee training Work and life balance OA, BBS for staff and corporate culture WeChat account

Risk management Information disclosure of public companies Information disclosure Investors’visits Investors and shareholders ROI and growth Investor briefing Corporate governance Shareholder’s annual congress Participation in decision-making processes

026 Country Garden Holdings Company Limited

STAKEHOLDERS EXPECTATION AND DEMANDS COMMUNICATION AND RESPONSE METHODS

Customer satisfaction survey Product quality and safety Customer compliant mechanism Owners and customers Service of premium quality Community activities Privacy protection Social media and corporate journals

Supplier evaluation Fair, just and transparent procurement Supplier congress Suppliers and business partners Financing safety of supply chain Visits and investigations Supplier support Seminars and training

Building habitable homes Local communities Community activities Giving back to the community Corporate journals

Fair competition Exchanges on corporate culture Peers and industry associations Exchange of industry experiences Communication with the industry Building development consensus

Understanding impact on the community Field visits Charitable organizations and NGOs Charity Social services Communication with communities Charity events

Lawful corporate citizen Field visits Government departments and regulators Credible taxpayer Participation in decision making and recommendations Compliance of Operation Government-led projects

Transparent information disclosure Charitable activities Supporting social progress Information disclosure General public Poverty relief Social media and communication with the media Attention to vulnerable groups Monitoring of public opinion

027 2020 Sustainability Report

STRATEGIC MANAGEMENT ON KEY ISSUES

Country Garden hires a third party every year to conduct surveys on all stakeholders, asking them to rank the major issues they believe the Group is facing based on significance. Their suggestions and expectations on the Group's sustainability are important references for the management.

PRIORITIZATION PROCESS We identify major issues through the following steps:

IDENTIFY ISSUES DETERMINE AND THEIR SIGNIFICANCE THE LEVEL OF 1 INFLUENCE SPHERE 2 INVESTIGATION 3 SIGNIFICANCE The company's development strategy, industry Carry out internal and external The scores of the issues are ana- development trend, regulatory and capital mar- stakeholders questionnaire.The lyzed. Suggestions and expectations ket requirements, as well as domestic and for- questionnaire is opened through are classified and documented. eign social responsibility disclosure standards channels like Yuanbao APP, the Initial findings will be taken to the and other factors are integrated. The list of group’s intranet, official WeChat Board for deliberation. Issues of major issues in the past is further refined from accounts of the group’s brands, moderate, medium and high signif- the four dimensions of economy, environment, culture, hotels, commerce BUs. icance for sustainable development society and governance. will be finalized for disclosure.

IMPORTANCE MATRIX OF SUSTAINABLE DEVELOPMENT ISSUES OF COUNTRY GARDEN IN 2020

The analysis shows that issues of relatively high importance (in-

IMPORTANCE TO STAKEHOLDERS cluding highly important and medium important issues) to Country Garden have covered the demands and expectations of nine major 14 stakeholders, related UN SDGs, and most of the core GRI (Global 8 16 Reporting Initiative) indicators, which truly responds to the con- 15 9 cerns of relevant parties, conforms to the Group's development 12 directions and reflects a high degree of compliance. In addition, we 10 17 13 designed open Q&As to know more about stakeholders' evaluation 1 18 on the Group's work of sustainable development. According to the 17 analysis, the most recognized work is social welfare and poverty 2 19 4 27 3 24 28 Relief of the Group. The work of ESG disclosure and practice comes 23 20 second. 5 22 21 25 26 29

IMPORTANCE TO THE GROUP

OPERATIONAL ENVIRONMENTAL SOCIAL IN- EMPLOYMENT AND MANAGEMENT MANAGEMENT VESTMENT LABOUR PRACTICES 028 Country Garden Holdings Company Limited

LIST OF KEY ISSUES AND THE SCOPE AND INFLUENCE

SCOPE AND INFLUENCE NO. KEY ISSUES STAKEHOLDERS CHAPTER COVERING THE TOPIC INTERNAL EXTERNAL Regulators, Customers, General 14 Product quality and safety Public, NGO, Employees 7.1

8 Employees’ health and safety Employees 9.2

9 Employees’ rights and care Regulators,Employees 9.2

15 Customer service and satisfaction Customers, General Public 7.3 ISSUES OF Staff training and Employees HIGH SIGNIFI- 10 development 9.3 CANCE Talent recruitment and Employees 11 team building 9.3

Customer privacy and infor- Regulators,Customers, 16 mation security General Public 7.3

Prohibition of child NGO, Regulators, Local Commu- 12 labor and forced labor nities 9.1

Equal employment and Regulators, Employees 13 employee communication 9.1

Risk management Investors, Employees, Customers, 17 General Public 6.2

Set sustainable develop- Regulators, Local Com- 18 ment goals munities, investors 6.3

Compliance management Investors, Employees 19 and integrity construction 6.2

Operating performance Investors, Employees, Customers, 20 and investors' equity General Public, Regulators 6.1

27 Community development Local Communities, Gen- 10.3 ISSUES OF and social influence eral Public, NGO MEDIUM SIGNIFICANCE 21 Industrial Development Regulators, Peers, General Public 4

Water resources utilization Regulators, Local Communities, 1 and sewage treatment General Public 8.4 Energy saving, emission reduc- Regulators, Local Communi- 2 tion, and green operation ties, General Public 8.4

Policy response and Regulators, General Public, NGO 28 public participation 7.4

Employees, Investors, Customers, Stakeholder communication Suppliers and Business Partners, Local 22 Communities, Peers, NGO, Regulators, 6.3 General Public

029 2020 Sustainability Report

LIST OF KEY ISSUES AND THE SCOPE AND INFLUENCE

SCOPE AND INFLUENCE NO. KEY ISSUES STAKEHOLDERS CHAPTER COVERING THE TOPIC INTERNAL EXTERNAL

Supply chain environment 23 and social risk management Suppliers and Business Partners 7.4 ISSUES OF MEDIUM 24 Intellectual property Regulators, Peers, Suppliers and 6.2 SIGNIFICANCE protection Business Partners Green building and Regulators, Local Communities, 3 green community Customers, General Public 8.2

Reasonable marketing 25 and promotion Customers, General Public 7.3

Regulators, Local Communities, 4 Waste treatment and recycling Customers, General Public 8.3

Regulators, Local Communities, 5 Green technology innovation Customers, General Public 8.2 ISSUES OF MODERATE 29 Charity and social service Local Communities, General Public 10.2 SIGNIFICANCE Use of environmental protection Regulators, Local Communities, 26 materials Customers, General Public 8.3 Regulators, Local Communities, 6 Tackling climate change 8.7 Customers, General Public Regulators, Local Communities, 7 bio-diversity Customers, General Public 8.8

030 Country Garden Holdings Company Limited

QUALITY FIRST

CREDIBLE COUNTRY 07 GARDEN

Feature｜ “Solid Foundation Ini- 033 tiative” for Better Quality-Higher Quality and Efficiency of Safety Management Craftsmanship 035 Smart Innovation 041 Devoted Services 042 Win-win for All 046

OVERVIEW

With production safety as the premise, Country Garden is committed to the development of smart construction with an exploration of systemic reform of construction methodologies. Believing in the power of technology to change anything, we have carried out extensive collaboration with stakeholders in the society to grow our presence in digitized construction, robotics, and modern agriculture, which feeds back into the quality growth of our company, ultimately benefiting households and consumers with premium experiences of better products, services, and communities.

031 2020 Sustainability Report

TOPICS DISCUSSED IN THIS CHAPTER

SUSTAINABLE DEVELOPMENT SDGs DISCUSSED IN TOPICS DISCUSSED IN THIS THIS CHAPTER CHAPTER

GOOD DECENT WORK INDUSTRY, SUSTAINABLE RESPONSIBLE Supply chain environment and HEALTH AND AND ECONOMIC INNOVATION AND CITIES AND CONSUMPTION social risk management 3 WELL-BEING 8 GROWTH 9 INFRASTRUCTURE 11 COMMUNITIES 12 AND Product quality and safety PRODUCTION Customer service and satisfaction Customer privacy and information security Reasonable marketing and PARTNERSHIPS promotion 17 FOR THE GOALS

032 Country Garden Holdings Company Limited

FEATURE ｜“SOLID FOUNDATION INITIATIVE” FOR BETTER QUALITY-HIGHER QUALITY AND EFFICIENCY OF SAFETY CONTROL

“Country Garden builds good homes and serves everyone with the pursuit of DYNAMIC IDENTIFICATION AND PUBLICIZING OF MAJOR POTENTIAL great life. This is our obligation to the society.” a quote from Chairman Yeung HAZARDS: Kwok Keung. “Our company should design and build good houses for people Identify and deliberate on potential hazards and update the "hazard indicator with actual needs(in want of a home or residential improvement). Everyone board" in time. on our staff needs to strive to improve our competitiveness and fully commit to everything we do.” GENERAL PROJECT INSPECTION GUIDELINES: Country Garden has always lived up to our philosophy of “safety and quality Develop a template of inspection and patrol guidelines for each project, focus- are the lifelines of our company” and continues to improve on product quali- ing on key areas of potential hazards. ty and safety control. In 2020, Country Garden launched a one-year initiative called Solid Foundation Initiative, which aims at full implementation of safety TARGETED SAFETY BRIEFING: management： standards, allowing us to realize our sustainable development conduct on-site briefings for dangerous spots such as elevator wellhead, re- strategy of digging deep, laying stronger foundations. The implementation served hole, I-beam cantilever, and other spots. of the initiative was led by the company’s leadership and was guided by our corporate culture. Training sessions, standard operating procedures, and in- SAFETY CULTURE DEVELOPMENT AND RELEVANT CAMPAIGNS: centives are incorporated as well. Measures are introduced systematically to carry out the Guardian Program featuring "messages from loved ones", "vol- improve quality and ensure site safety. Meanwhile, in response to the calling unteer safety officers" and "safety squad" as part of daily management. We of the Solid Foundation Initiative, the operation center announced eight quality also conduct safety education campaigns on a regular basis and commend & safety management instruction menus to be strictly followed though during outstanding teams on a monthly basis. construction by all regions.

ACCOUNTABILITY MECHANISM FOR POTENTIAL HAZARDS SET BY REGIONAL OFFICES: Regional offices are responsible for compiling the potential hazard list and mandatory rules. Strict quality control will be exercised in areas such as foundation pit, earthwork, elevator shaft, lighting shaft, large mechanical equipment. Accountability mechanism will be activated in case of any violation.

SAFETY PLEDGE LETTERS SIGNED AT ALL LEVELS: Strengthen the supervision of the general contractors on project safety management, and require the project manager to conduct a monthly evaluation on project management staff.

REGULATION OF SAFETY PRACTICES: Carry out monthly regional patrols and random inspections, and issue "rectification notice of potential hazards".

PRE-BID SAFETY MANAGEMENT: Carry out "pre-bid disclosure" in the bidding stage, and the general contractor shall take the lead in organizing safety planning and briefing.

033 Solid Foundation Initiative 2020 Sustainability Report

DEDICATED CAMPAIGN ON SAFETY CONTROL

According to the requirements of the Solid Foundation Initiative, Country Garden requires each regional office to carry out various dedicated safety control campaigns, and each project to conduct special operations such as "fall prevention" and "collapse prevention", and urge the supervisory entities and construction entities to implement the measures of such operations.

At present, all projects have already installed fall protection devices, safety nets, large equipment bolts, early warning bolts as required. At the same time, we will continue to control the whole process of the project, focusing on the concrete implementation of such measures to prevent falls from height and Special safety control campaigns collapses in the region and to ensure the safe production of projects.

ENGINEERS’ CULTURE SEASON HERO EMPLOYEES

In order to carry on Country Gar- In June 2020, Country Garden organized the "Country Garden Hero Employ- den's spirit of craftsmanship, we ees" award to commend the outstanding employees who made continuous have implemented the strategy of contributions in their positions. A total of 110 "Country Garden Hero Employ- "Solid Foundation Initiative", striving ees" were awarded in this activity. They are dedicated to their respective posts, to enhance the quality awareness of constantly forging on and leading the team forward with outstanding perfor- front-line engineers, and have cre- mance and striving to create products that enable great living together with ated an Engineers’ Culture. We have Country Garden. set up the "Building Homes with Sol- id Foundations and Craftsmanship – Engineers’ Culture Festival".

At the launching ceremony, 12,000 engineers from around the country participated and solemnly swore to accomplish the slogan of "Country Garden builds good homes.".

Engineers’ Culture Season "Country Garden Hero Employees" award

INSISTING ON OPEN CONSTRUCTION SITES, GOOD QUALITY OF CONSTRUCTION VISIBLE TO ALL

Adhering to the construction philosophy of "precision construction and quality home building", the Guibei region of Country Garden has been committed to "open construction sites" and invited customers to enter the construction site to understand the construction techniques, construction process, and construction materials directly. The president and the general manager of marketing of the Guibei region also communicated with the owners face to face to understand the demands of customers. The "open sites" philosophy not only reflects our confidence in the hard-core construction quality of the project, but also reflects our full respect for customers' right to participate in the supervision of the construction process. 034 Country Garden Holdings Company Limited

CRAFTSMANSHIP

In the face of the challenges and opportunities arising from the new industrial landscape, Country Garden consistently adheres to the principle that safety and quality must come first and explicitly accords priority to safety and quality over speed and profits. We plan the progress of all projects scientifically and steadily push forward the progression of projects under the premise of ensuring safety and quality, as well as abiding by the law and regulations. We also pay close attention to our customers' pursuit of health and strive to create healthier and safer construction products for them with all our hearts.

PRODUCT QUALITY CONTROL SYSTEM

QUALITY MANAGEMENT SYSTEM CERTIFICATION Country Garden attaches great importance to controlling product quality and In terms of products and technologies, we have strengthened and imple- continuously pursues excellence in quality as projects advance. We adhere to mented smart construction by adopting and promoting technologies such as the six quality control principles to strictly control product quality and safety. smart building robots and the "self-lifting building platform", an automated We are committed to creating high-quality products, including in the area of construction platform for smart residential buildings, to minimize risks to em- agriproducts where our agricultural branch introduced the most advanced ployee health, the environment and product quality during construction opera- product quality management system and obtained ISO9001 certification. In tions. 2020, we continued to step up efforts in the area of quality management system certifications and made continuous efforts to ensure that all of our prod- In terms of commercial and residential property management, we have ucts are certified by HACCP and ISO9001. established a comprehensive emergency response protocol to reduce safety hazards during operation and to ensure that any unusual situations are ad- Country Garden continues to refine the Group's product quality management dressed in the park in a timely manner. systems and strengthen the management tools in all aspects of purchasing, construction, acceptance, and delivery to ensure the delivery of high-quality projects and products. In order to strengthen the quality management of all regions and projects of the Group, we have formulated and complied with internal rules and regulations such as "Project Quality Management Manual", "Material Acceptance Management System", “Prototype First Management System", etc. In 2020, we updated the "Country Garden Group Operation Man- agement System (2020 Trial Version)" to strengthen the preliminary management such as drawings review and prototype inspection first to avoid or reduce the risk of quality problems. Combined with the strengthening of process acceptance, we will strive to gradually improve the management standard.

CONTINGENCY MECHANISMS Country Garden is constantly improving the responsiveness of its product emergency response mechanism and is committed to expanding the coverage of the emergency response mechanism and to mitigating the negative impact of various risks. At the institutional level, we have established internal guidelines such as the Emergency Management System and the Information Reporting Management System, which serve as a reference for responding to emergency and unexpected incidents. We continue to enhance our emergency response capabilities, including optimizing our response protocols to the af- Quality management system Quality management system ter-sales of product abnormalities, extreme weather, and public emergencies. certification -- ISO9001 certification -- ISO9001

035 2020 Sustainability Report

PRODUCT QUALITY AND PRODUCTION SAFETY Promoting a procedural and standard- SAFETY STANDARDS MANAGEMENT SYSTEM OF ized production safety management, COUNTRY GARDEN GROUP improving the safety management protocol of the whole process of construc- Country Garden has established internal product quality and safety standards tion, standardizing on-site manage- based on the Project Quality Management Manual and the Prototype First ment measures, and implementing the Management System, which set strict requirements for product quality and key control requirements of the Group safety management. We have incorporated key elements that require great attention in the production, acceptance, and after-sales processes, and used them as benchmarks to strictly monitor quality control links. We require all MANUAL OF STANDARDIZED Vigorously promoting standardization regions and projects to strictly comply with this set of internal quality and safe- SAFETY AND CIVILITY of safety measures, improving con- ty standards and strictly adhere to the "Country Garden Engineering Safety MEASURES OF COUNTRY struction site equipment and facilities, Standardization Diagrams", which clearly stipulates standardized construction GARDEN GROUP strengthening safety education cam- operations and product acceptance requirements. At the same time, we re- paigns and training for front-line con- quire regions to establish rules and regulations for "5+5+3" types of issues (five struction personnel, and carry out in- types of structural issues, five types of customer-sensitive issues, and three depth safety inspections types of customer-concerned issues), including specific management systems and technical standards, to ensure that 100% of products and projects pass the quality and safety standards and provide customers with quality products. SAFETY MANAGEMENT STRUCTURE Country Garden attaches great importance to safety in construction and has established a Production Safety Committee in 2018. Yeung Kwok Keung, Chair- PRODUCT SAFETY MANAGEMENT man of the Board of Directors of the Group, is the Director of the Production Safety Committee, and its members are composed of the heads of all operational centers of the Group, representatives of regional presidents, the General Upholding the safety management philosophy of "safety first and people-ori- Manager of Boyue Smart Construction, the head of the Group's safety depart- ented", and under the guidance and supervision of the Production Safety ment, and specially appointed renowned scholars. The Safety Committee is Committee, Country Garden is constantly improving our safety management responsible for giving instructions and making decisions from all aspects of system. At the same time, we actively fulfill our commitment to the health and safety management, regularly reviewing and evaluating the group's safety safety of construction workers and are committed to creating safe and civilized performance in terms of health and safety policies and safety work imple- demonstration construction sites, putting the principle of "safe construction" mentation, and using this as a reference for deploying future safety work and into practice in every aspect of the construction process. updating relevant policies and systems.

In order to supervise the work of the Production Safety Committee, the Presi- SAFETY MANAGEMENT SYSTEMS dent of the Country Garden Group signed a production safety liability statement Country Garden has established a comprehensive product safety management (valid indefinitely) with 104 regional presidents as signatories, which clearly system. We strictly comply with national laws and regulations such as the requires each region to improve the overall production safety management Construction Law, the Production Safety Law, the Regulations on Construction level and to pursue "zero casualties" in production as a long-term goal. Work Safety Management, and the Regulations on Quality Control of Construc- tion Projects, and continuously amend the Production Safety Management We require our executives to take responsibility for safety management and System of Country Garden Group, the Manual of Standardized Safety and Civil- link executive salaries to safety performance. If a safety accident occurs, de- ity Measures of Country Garden Group, and the Operation Risk Management pending on the severity of the accident, the regional president, the regional Measures. We strive to obtain the internationally recognized OHSAS 18001 safety head, the regional safety manager, and the project manager will be sub- occupational health and safety management system certification and also ject to different degrees of economic and administrative penalties according require the constructors to obtain relevant international safety management to the Country Garden Work Safety Management System. At the same time, certifications. we introduced a production safety guarantee incentive system to reward the group's safety directors, regional full-time safety managers, and project safety heads with special financial incentives for good safety performance.

036 Country Garden Holdings Company Limited

COUNTRY GARDEN SAFETY SAFE PRODUCTION COMMITTEE OF MANAGEMENT STRUCTURE THE GROUP

Production Safety Committee General Office

Engineering Management Department of Group Operation Center

Regional Safe Production Leading Group and Safety Management Department

Dedicated safety staff in Project Department

SAFETY MANAGEMENT MEASURES Country Garden has implemented and enforced various safety management measures in its regions and projects to enhance the safety awareness of man- By the end of 2020, there were agers and workers at all levels, covering the production safety responsibility 5 system, production safety management, and examination, potential hazard full-time safety directors or managers inspection and management system, safety education and training, emergency at the Group's headquarters and rescue and accident reporting, management of hazardous projects, standardization manual, etc. safety managers at 312 each regional platform IN 2020, WE ACTIVELY TOOK MORE EFFECTIVE MEASURES TO IMPROVE A total of 2,490 CONSTRUCTION SAFETY BY MAKING THE FOLLOWING EFFORTS： safety managers are Incorporating third-party medical examination for construction personnel appointed in three-level into the contracts signed with construction contractors and based on the six- organizations in-one worker recruitment system, we have incorporated the real-name doc- safety manager for each umentation, medical examination, education, and other safety work require- 1 project under construction ments into each region and project. The 6-step requirement for large machinery was improved on the basis of safety control, and the management of personnel and major hazards was with a total of 2,173 people strengthened.

037 2020 Sustainability Report

Case｜ Tengyue company sets stringent safety targets and takes several measures to improve site safety performance

In 2020, Guangdong Tengyue Company, a subsidiary of Country Garden, established a stringent occupational health and safety target, requiring an annual injury rate of . To this end, Tengyue has developed several management measures and introduced advanced safety technologies to improve product quality and safety≤ performance 2‰ across the board:

DAILY MORNING MEETING: THE TOWER CRANE HOOK VISUALIZATION SYSTEM, TOWER CRANE AN- all projects will carry out a daily safety morning meeting to explain the TI-COLLISION SYSTEM: safety precautions of the day's operation and inform the corresponding when the two tower cranes of the project work opposite to each other and safety technical security measures. there is a risk of cross collision, the tower cabin will automatically sound an alarm, effectively solving the safety hazards of the previous tower crane driv- WEEKLY INSPECTION BY PROJECT MANAGERS: ers operating solely by experience. project managers are required to inspect projects at least once a week and implement timely remediation and rectification when hidden dangers SAFETY INSPECTION APP "QUALITY AND SAFETY CONNECT": are found. the company independently developed the mobile phone inspection system of Quality and Safety Connect, which has disrupted the traditional on-site super- MULTI-PERSON SIMULTANEOUS ACCEPTANCE MECHANISM FOR vision pattern, effectively solved common problems such as the difficulty of re- DANGEROUS AND LARGE PROJECTS: al-time monitoring of project sites, the difficulty of personnel safety protection In the process of inspection of dangerous and large projects, we insist that and the difficulty of acquiring on-site information in the past, and strengthened the acceptance of key parts must be accepted by the production manager, the real-time control of the process. technical head, safety manager, etc. simultaneously, and the acceptance sign will be hung on the corresponding project facade.

SAFETY TRAINING FOR ALL STAFF Country Garden views safety as a key part of the construction process, and we strive to further improve the quality and safety level of the project by vigorously carrying out safety culture building campaigns such as the Guardian Program, as well as strengthening quality and safety training covering all employees and construction personnel of related parties, while continuously deepening the safety awareness of the workforce.

For all the employees and For all the operation department For regional major 1 2 3 construction personnel of the Group: employees of the Group: operation team leaders: we hold a quality and safety training meeting we hold regular quality and safety meetings project leaders carry out online intensive once a year where we clarify the key princi- every two weeks, including the interpretation training at different levels to share quality ples and norms of safe production, make a of national policies and quality management and safety management knowledge, the lat- general report based on the implementation requirements of the group and the sharing of est regulations of the Group, etc. of safe production work in the previous year, best safety and quality management experi- and plan the safe production targets for the ence and process practices. current year.

In 2020, the safety training coverage rate of In 2020, the headquarters organized a total of In 2020, Country Garden's employees and related party a total of construction workers reached 29 24 safety and quality training safety and quality training were organized by the group of Country Garden 100% inter-departmental safety and quality 4 training within Country Garden covering about 203,000 people

038 Country Garden Holdings Company Limited

Case study ｜Guardian Program

In 2020, Country Garden carried out the " Guardian Program" campaign across all projects through the three major events of "Message from Loved Ones", "Safety Squad" and "Volunteer Safety Officer". Capitalizing on safety management Country Garden has implemented the Solid Foundation strategy by strengthening the foundation of construction， management and enhancing the fundamental product competitiveness to help perpetuate the group’s development.

During the activity of "Message from relatives", we interacted with workers' families to create a sound safety culture. During the activity of "Safety Squad", we required that each project have both general contractor and supervisor working in tandem to implement the dual accountability for single position system. During the activity of " Volunteer Safety Officer", part-time safety personnel signed up for on-site Safety training on-site inspection to prevent violations of regulations.

DEMONSTRATION CONSTRUCTION SITES FOR SAFETY AND CIVILITY Country Garden encourages its projects to develop themselves into provin- By the end of 2020, Country Garden's construction projects had won cial and municipal demonstration sites for safe and civilized construction and adopts a promotion system in the selection of benchmark projects. Projects shortlisted for "Regional Benchmark Projects" can participate in the final con- 935 government awards for safety, quality, and civilized construction. test, and winning projects can then compete for the "Country Garden Group Benchmark Projects".

PRODUCT SAFETY INSPECTION Case｜Project quality inspection

Country Garden understands that safe construction is impossible without the REGIONAL OFFICES supervision and guidance of a sound product quality inspection system. We cover the whole chain of product operation by conducting on-site inspection Full spectrum inspection of the projects under construction, and analyze and patrolling, employing professional third parties to conduct the quality the safety and quality level of the construction project in the area based inspection, and promoting the implementation of smart sites, in order to con- on statistics tinuously strengthen quality and safety supervision and minimize potential product safety hazards.

ON-SITE CONSTRUCTION INSPECTION Construction safety and quality inspection is an important tool for Country THE GROUP Garden to control the safety and quality of the whole process of construction projects.The inspection includes on-site patrol of semi-finished products Monthly and quarterly random check on all regions to fully understand during the construction process and on-site acceptance inspection of products the thorny points and difficulties of project safety and quality before delivery.

During the on-site construction inspection, based on the process of "data collection and analysis-self-reflection-improvement-recap" we review the site inspection results of each project, including the safety， and quality control methods at the current construction stage, the level of construction A SEASONED THIRD PARTY techniques, and the good construction practices, in order to discover weak- nesses, identify objectives and sort out ways for improvement. In addition, we Safety quality assessment and inspection constantly expand the scope of project inspection, anticipate possible product Special ops quality problems in the inspection process, and actively seek solutions. Industry benchmarking

039 2020 Sustainability Report

EXAMINE THE POTENTIAL QUALITY AND SAFETY HAZARDS Country Garden has formulated specific safety management guidelines to promote standardization of management practices for 8 basic safety management measures such as full closure of construction sites, certification of special operations personnel, 6 key control priorities such as elevator shafts and scaffolding, and 16 key junctions such as foundation pit support, tower cranes and temporary constructions. We will continue to make efforts in：

Implementing the Starfire initiative to encourage the use of new technologies.

In 2020, the Group's operations center conducted safety inspections of

Holding construction planning meetings, analyzing 1,959 project quality and safety management difficulties in advance, and formulating targeted management bidding sections and mechanisms to control quality risks and improve pulled the plug on project quality.

Establishing a pool of specialists in 47 quality and safety, bringing together Continuing to use outstanding third-party consulting organizations in sections with high risks to thoroughly professional and technical talents the industry to conduct process inspections, carry out assessments investigate safety hazards to solve front-line problems in a tar- while evaluating specific problems, making recommendations for geted manner. rectification and preventive measures to assist projects in improving project quality and reducing safety hazards.

SMART SITES With the development of smart manufacturing and robotics, Country Garden Country Garden Operation APP has been fully rolled out and operational, the is committed to using technology to build a new type of "smart site" to achieve overall uploaded percentage of the Group has reached 100%, and the online real-time remote monitoring, intelligent identification of hidden dangers, time- project filling rate has reached 87% ly reporting of warnings, and other functions to change the existing safety pro- All large equipment in the project； have the face recognition system or fin- duction control model, improve the efficiency of product quality and safety, and gerprint identification system to reduce accident probability greatly reduce the risk of accidents. Video cameras have been installed at some project construction； sites to enhance site safety and security. In 2020, Country Garden, together with Guangdong Bozhilin Intelligent Tech- nology Corporation and other partner construction companies, jointly promoted the construction of smart sites. The main aspects of this initiative include:

040 Country Garden Holdings Company Limited

BUILDING HABITABLE HOMES

Country Garden is committed to creating a livable and comfortable living en- communities. At the same time, as the aging of China's population intensifies, vironment to enhance people's level of satisfaction and happiness. Guided by we also pay more attention to adapting the living environment for the elderly the strategy of "Healthy China", Country Garden focuses on "health" and the and the construction of barrier-free elderly facilities in the community in the concept of sustainable development of human living environment to meet the process of product design so as to bring a healthier, safer and more suitable physiological, psychological, and social needs of customers and create healthy, living environment for the elderly clientele. safe, comfortable, and environmentally friendly high-quality residences and

Case｜ Architectural design philosophies in the post-epidemic era

In 2020, the outbreak of Covid-19 has disrupted all industries across the country and made the construction and real estate industry identify problems in terms of products and living experience. Therefore, Country Garden participated in the drafting of the Construction Planning and Design Guide for the Post-Epidemic Era, which focuses on the fields of planning, architecture, water supply, and drainage systems, HVAC, information, and intelligence, including the promotion of the concepts of resilient cities and healthy green buildings, and the practical application of intelligent digital technologies to the field of construction industry design. At the same time, Country Garden proposed specific recommendations for the transformation of urban planning and development in the post-epidemic era, such as strengthening the integration of public health system and urban planning system, reserving emergency space for public health emergencies, and setting standards for the response.

SMART INNOVATION

The advancement of technology is constantly impacting all industries, and digitalization and intelligence have become one of the key competitiveness of enterprises. Country Garden has been deepening its innovation and creation capabilities, capitalizing on technological solutions and promoting the transformation and upgrading of the industry towards one of hi-tech.

With the steady development of society, the evolution of technology is ac- chine, and transform production patterns and modern management methods celerating the profound change of human life, and in 2020, Country Garden through artificial intelligence, Internet of Things, block chain, big data, 5G, and continued to deepen its "digital" development and empower the group with other technologies, providing customers with comprehensive one-stop mar- technology. Currently, Country Garden is aiming to break through physical keting, ecosystem, and scenario integration services, and piloting a series of and temporal barriers, connect all things, and synchronize human and ma- future real estate technology scenarios for the industry:

RPA (Robotic Process Automation) services to close to 100 banks, covering 30,000 bank accounts in the real estate sector, significantly improving work efficiency.

Smart voice recognition has been Forward-looking exploration and im- applied to marketing scenarios, plementation of blockchain has been retail stores, smart construction laid out and planned for rapid empow- sites, smart projects, etc., which has erment in 5 major fields and 14 busi- improved efficiency by 20 times with nesses, including finance, marketing, the automatic order filling for actual data, justice, and life. projects. 041 2020 Sustainability Report

Case｜Digitization applications "PLANE TREE" - THE OPEN PLATFORM OF IT CAPABILITY OF COUNTRY GARDEN GROUP

The Plane Tree platform is an open platform that brings together the IT capabil- Example of Innova- ities of Country Garden. By building a product center focusing on cloud comput- tion in Digitalization ing, security, big data, automation, etc., the open platform offers proven product Process solutions to customers, effectively improving the operational efficiency of various business processes across multiple industries and scenarios while also reducing digital investment and operating costs.

CASE OF COUNTRY GARDEN GROUP'S DIGITAL ANTI-EPIDEMIC PRACTICE In 2020, Country Garden actively carried out the "digital anti-epidemic", combined with the actual needs of epidemic prevention and control, relied on the latest achievements of digitalization and informationization, adopted remote office, electronic signature, electronic contract, online house purchase, smart site, and other work content, and steadily promoted the smooth resumption of various businesses.

Information Country Garden Video collection Personnel Faster information exchange, Conference System less human contact and distribu- control tion Voice Robot A ROLE MODEL OF APPs are developed DIGITAL OPERATION PRA Robot Enabling efficient information on multi-dimensional systems based on circulation and distribution, IVR telephone reducing human contact, digital technology and capabilities to ensure ensuring speedy recovery of all E-documents Transaction safe, prompt and lines of business safeguard Communi- orderly restoration of E-signature, e-stamp businesses cation on businesses Temperature test at entrance+ e-pass Project delivery and communi- Middle platform for cation with legal payment and invoicing department

DEVOTED SERVICES

RESPONSIBLE MARKETING

Country Garden complies with the Advertising Law of the People's Republic of to clearly define misleading and deceptive behaviors and strictly require our China and related laws and regulations and strictly controls information out- staff to refrain from any false, misleading and fraudulent behavior during the put through channels such as radio and television, paper media, portals, and sales process. streaming media to ensure the accuracy, legality, and authenticity of external publicity information and to avoid adverse social impacts and legal risks to At the same time, we attach great importance to the protection of consumer the brand due to inappropriate output. We have formulated internal systems rights and interests. Due to possible discrepancy of verbal introduction by our or guidelines such as "Operation and Management System of Country Garden sales consultants, we will remind customers to carefully read the home pur- (Trial Version of 2020)", "Operational Guidelines for Pre-Sales Customer Risk Inspection" and "Operational Guidelines for Handling Customer Complaints " 042 Country Garden Holdings Company Limited

chase contract version, UH announcement, UH guide, and warm tips before the sales transaction is conducted, and fully consider the risks of market fluctuations and policy changes to ensure that the purchase of commercial properties is a fully voluntary commercial act to deliver honest sales and improve customer satisfaction. We provide multiple reporting hotlines for any illegal and irregular marketing behaviors that occur during the negotiation process and will handle them in a timely, fair and open manner according to our internal management policies.

RESPONSIBLE MARKETING TRAINING Country Garden focuses on protecting the legitimate rights and interests of consumers, and we have conducted training for all employees on responsible marketing to continuously regulate their marketing practices.In addition, we have strengthened our compliance campaigns on marketing to avoid false or exaggerated marketing and effectively protect consumers' right to know by setting up signboards in our sales department.

A. Air quality, such as gas conversion F. Convenient travel, such as subway station, garbage collection station, COUNTRY GARDEN SALES DEPART- construction flour mill, chemical plant; MENT RISK IDENTIFICATION SIGNAGE MODEL AND YOJU PUBLIC DISPLAY SPECIFICATIONS G. Environment, such as substation, B. Vision, like mountain sewage treatment plant, high voltage bridge, high voltage line C. Ventilation, lighting, such as CONTENT high-rise buildings OF THE H. Project value, positioning, such as the surrounding communities SIGNS D. Noise, such as the main entrance transformed from shabby sheds, of the community, garage entrance, rent-control housing community various processing plants, urban trunk roads, expressways Including but not limited to I. Cultural practices, such as the following information churches, cemeteries, temples, hospitals, etc E. Smell, such as feed factory

We require the adverse factor signage to make all factors that exist within the red line of the project and within 1 km outside the red line that would affect the owner's residential use or project appraisal to be faithfully displayed on the model, and make the corresponding signage for display.

COUNTRY GARDEN HAS SET UP A NUMBER OF PUBLIC REPORTING CHANNELS TO ALLOW CONSUMERS TO MONITOR AND

GIVE FEEDBACK AT ANY TIME

Country Garden regional marketing management department service supervision hotline: 400-8222-288 Supervision hotline of Country Garden Group headquarters: 400-8919-338 Country Garden Group Audit and Supervision Center Supervision Department reporting hotline: 0757-26395969 0757-29916100 Country Garden Group piloted 3-to-1 owners' exclusive corporate WeChat service group to collect owners' opinions in real-time

043 2020 Sustainability Report

KEEP CUSTOMERS SATISFIED

Country Garden respects the rights and interests of consumers and is committed to providing customers with the highest quality and attentive services. We strictly comply with regulations or guidelines such as the "Operational Guide- In 2020, Country Garden's overall customer satisfaction in the property lines for Pre-Sales Customer Risk Inspection" and "Operational Guidelines for development business increased by Customer Complaint Handling" to standardize the management of customer needs and continuously improve service quality. 2020 saw the introduction points compared to 2019 of new internal regimes such as the "Country Garden Group Operation Man- 18 agement Scheme (2020 Edition)" and the specification of complaint handling processes, principles, time limits, and compensation claims handling in the customer management section. RESIDENTIAL CUSTOMER MANAGEMENT CUSTOMER SATISFACTION With the service philosophy of "Customer needs being the starting line, cus- Country Garden is constantly optimizing its products and improving its customer satisfaction is the finishing line", Country Garden has creatively devel- tomer service structure to enhance customer satisfaction. At the same time, oped the "Nine Steps of Warm Welcome" to welcome owners home happily. we listen to the needs of our customers through customer satisfaction re- From the first follow-up visit in the first week after signing the contract to the search. completion of the development of the community, we take every step from the perspective of the owners, insist on interacting with them diligently and create In 2020, Country Garden introduced a third-party survey for the first time and a comprehensive package of services for their waiting period. elevated the full-cycle customer satisfaction assessment to the group level, using incentives to promote customer-centric awareness across the group In 2020, we implemented the Full Cycle Homeowner Service System, focusing while aligning ourselves with industry values. Our survey is open to all con- on the full cycle of customer service through activities such as themed activi- tracted owners, and the parameters include marketing, engineering, design, ties during traditional holidays, birthday celebrations for the elderly, and busi- property among other links in the full cycle management, and is launched ness experience, with warmth and care extending through the entire process through public website links, SMS, and phone calls. from open-house to move-in.

Case｜Jiayuan Service System

The Hebei region carried out festive Zhejiang region carried out the activities of community cultural thematic activities Gui Yuan Life Festival, combining online and during the Mid-Autumn Festival, invit- offline formats, covering many communities ing prospective owners and residents in the region, allowing owners of various age to participate together, reflecting the groups to participate in the activities, which happy life scenes of new home owners greatly enhanced the participation and satis- the Guiyuan Festival and residents. faction of owners. the Mid-Autumn Festival activities

Shannan Region held a "Centennial Banquet" for the elderly homeowners, paying attention to the health and needs of the elderly in the community, creating a good neighborhood atmosphere, and adding to the harmonious community environment. Centennial Banquet

044 Country Garden Holdings Company Limited

HOTEL CUSTOMER MANAGEMENT COMMERCIAL CUSTOMER MANAGEMENT Country Garden Hotel has always implemented the brand philosophy of "living Country Garden has always focused on the needs and experiences of com- with pleasure", actively adapting to market development and changes, con- mercial project customers, and we have gradually established a commercial stantly innovating and making breakthroughs, creating personalized, interac- satisfaction management system and a commercial customer service system. tive, and connected quality customer service, and offering consumers a diver- In 2021, Country Garden will conduct a commercial consumer satisfaction sified leisure experience based on accommodation. survey and explore future service improvement areas based on the results of consumer surveys and feedbacks. With customer experience as the key, Country Garden Hotel has formed a service quality system by combining external evaluation with internal inspection ACTIVELY RESPOND TO CUSTOMER DEMANDS and assessment. At the same time, customer service quality supervision is In order to better help regions and projects understand customers' opinions enabled through both customer opinion management (comments on Brand and promote a synergized development between headquarters, regions, and Wisdom website and online feedbacks) and service quality inspection, com- projects and jointly build a service quality management system, we require plemented by service quality assessment incentives to achieve self-inspection customer service staff to arrange for the manager responsible for complaints internally, thus ensuring the healthy and sustainable operation of the hotel. at the regional level to take the lead in handling complaints and contacting customers within 24 hours (within 2 hours for urgent issues) to negotiate and deal with them, with the process and results regularly communicated to the In 2020, the overall customer satisfaction unified customer service platform system, and with call center personnel rate of Country Garden's hotel business was making return visits to ensure that customer demands have been resolved be- 93.94 fore closing the orders. an increase of 1.27 points from 2019

In 2020, Country Garden had a total of 170,000 complaints, with a case-closed rate of 77%. This included 44% of construction and maintenance complaints, 23% of property management complaints, 19% of sales management complaints, 8% of customer service complaints, and 6% of planning and design complaints.

44%

23% 19% 8% 6%

CONSTRUCTION AND PROPERTY SALES MANAGE- CUSTOMER PLANNING AND MAINTENANCE COM- MANAGEMENT MENT COM- SERVICE COM- DESIGN COM- PLAINTS COMPLAINTS PLAINTS PLAINTS PLAINTS

045 2020 Sustainability Report

INFORMATION SECURITY AND PRIVACY PROTECTION

Country Garden strictly abides by the Law of the People's Republic of China on In addition, the Risk Audit and Supervision Center is responsible for controlling Cyber Security and other laws and regulations and has established the "In- and auditing information security and reporting to the Audit Committee on a formation Security Management System of Country Garden Group" and other regular basis. In 2020, in order to strengthen the management of customer regulations to manage the output, dissemination, use, and handling of custom- privacy, we aimed for 0 leakage incidents and strictly controlled and monitored er information to prevent the misuse of personal information and effectively work items related to customer information throughout the year. safeguard customer privacy.

We have established an information security team to control the Group's external customer information output and set up a sound information security In 2020, Country Garden received no complaints about customer management system and information security technical structure. At the privacy leakage. same time, in order to make each business segment of the Group comply with international and domestic information security requirements and better protect the security of customer information, we strictly comply with the General In 2020, Country Garden Digital Management Center conducted data Data Protection Regulation (GDPR) and the information security compliance security risk screening for schemes to meet compliance and legal requirements. In 2020, we drafted the "Data Security Management System of Country Garden Group", updated the business scenarios, organized "Personal Information Protection Policy Template", "Supplier Personal Infor- 16 and participated in mation Protection Policy", and other internal documents to gradually strengthen the personal information security protection situation for employees. In data security risk screening meetings 2020, Country Garden passed Level III Security Certification by ISO 20000 and 14 for business scenarios, completed ISO 27000 standards, effectively safeguarding the information security of the system data security impact assessments, group. 28 and delivered reports.

WIN-WIN FOR ALL

Country Garden is committed to working with multiple partners to make strides forward and strengthening communication with suppliers, hoping to facilitate a fair and transparent partnership for suppliers. At the same time, we actively participate in industry exchanges, constantly take part in the establishment of industry standards and promote innovation in the industry. In addition, we pay close attention to the cooperation between industry, academia, and research institutes and constantly develop and explore new business cooperation formats to achieve mutual progress on the basis of win-win cooperation.

RESPONSIBLE SUPPLY CHAIN

SUPPLIER MANAGEMENT SYSTEM Country Garden works closely with different types of suppliers such as ar- conditions and management responsibilities of various suppliers and adding chitects, designers, consultants, service providers, contractors and vendors, new work requirements and guidelines for drawing up procurement plans. and is committed to establishing a fair, transparent, and sustainable supply chain. We have developed a series of mechanisms such as "Supplier Resource At the same time, Country Garden has set up an internal control group and a Management Process", "Supplier Post-Assessment System" and "Supplier quality control group to continuously improve the process of supply chain per- Penalty Mechanism" to build up a whole life cycle management process for formance and to strictly supervise and control the process of entry, inspection, all types of suppliers from development, access, performance evaluation, and and management of suppliers. risk management to termination and withdrawal, and to continuously inspect and evaluate the hardware facilities and operational capabilities of suppliers. 2020, we updated the "Supplier Management Measures", "Designated Material Procurement Management Measures", including clarifying the shortlisting 046 Country Garden Holdings Company Limited

Internal Control Group Quality Control Group Responsible for the development of supplier management norms and Responsible for formulating material sampling plan, participate in systems and their timely dissemination so that quality controls are evi- on-site sampling work, ensure full coverage of sampling inspection of dence-based. all strategic partners throughout the year, and according to the testing Responsible for using information technology to ensure the implemen- reports issued by authoritative third-party testing organizations, impose tation of the system and continually improve and adapt the system to situ- corresponding penalties on unqualified suppliers to eliminate risks and ations on the ground. ensure product quality in a timely manner. Responsible for collecting complaints in the mailbox, taking a careful Responsible for inspecting factories on a random basis, supervise approach to the reported cases, and conducting comprehensive verifica- suppliers' product quality control process, preliminary risks, and ensure tion of relevant personnel. the process is controllable. Responsible for coordinating with other departments to eliminate the use of non-compliant materials, regulate construction companies, and eliminate counterfeit and shoddy materials.

IN 2020, COUNTRY GARDEN PARTNER SUPPLIERS WERE MAINLY DIVIDED INTO SIX CATEGORIES

MATERIAL ENGINEERING SUPPLIERS SUPPLIER

MATERIALS SPECIAL OTHER DESIGNATED OTHER GENERAL SUBCONTRACTED FURNISHING PROFESSIONAL AND SUPPLIED MATERIALS CONTRACTING MATERIALS ENGINEERINGS BY PARTY A

For suppliers of advertising materials, hardware products, and other types, we are committed to promoting localization of procurement, giving priority to local suppliers.

SUPPLIER ACCESS In 2020, Country Garden cooperated with a total of In conducting supplier entry assessment, the Group follows the screening requirements for supplier selection in the Supplier Management Measures and suppliers in the material issued the Notice on the Establishment of Supplier Shortlisting Conditions and 24,238 and engineering categories Standardization of Recommendation Process of Country Garden Group in 2020, which clearly examines and audits suppliers in terms of their quality management system, occupational health management, and environmental management system. Appropriate additional points will be given to suppliers who have passed ISO 14001 energy management system, ISO 9001 quality management system, and OHSAS 18001 occupational safety management system certifications. We will not hire suppliers with bad track records.Moreover, we have signed non disclosure agreements and CSR agreements with our suppliers to avoid environmental and CSR risks and ensure sustainability of the supply chain.

047 2020 Sustainability Report

When examining suppliers, we attach great importance to the establishment SUPPLIER COMPLIANCE of a green supply chain. In 2020, Country Garden continued to take into account the environmental and social risk factors of suppliers, giving priority to suppli- 1 Supplier Audit ers whose environmental and social performance meets the requirements. Performance） assessment and auditing are essential to building a sound supply chain. In 2020, Country Garden adopted different auditing methods for different Applying an environmental procurement monitoring system to keep statis- suppliers to ensure that they could provide compliant products and services. tics on the environmentally friendly procurement of office supplies, building equipment, and building materials.

Analyzing whether procurement items meet specific environmental standards, such as whether products have environmental certifications or approv- als granted by authoritative independent third parties.

MATERIAL SAMPLING INSPECTION 8 large-scale material sampling inspections were conducted nationwide in 2020. For unqualified suppliers, we took punitive measures such as warnings, fines, and sus- pensions depending on the degree of violation and took measures to ON-SITE INSPECTION: exclude suppliers who did not cooperate. 22,100 batches of materials were inspected on-site nationwide and 509 batches of substandard SPECIAL INSPECTION OF For materials that failed materials were detected, with a PARTY A-DESIGNATED to meet the standards, we non-conformity rate of 2.3%. MATERIALS asked suppliers to return all non-party A-designated products and fined the general contractor 1,413,500 RMB.

In 2020, Country Garden Group or- In 2020, Country Garden large-scale material sampling inspections ganized Party A-designated material conducted nationwide, covering sampling inspections, with 8 major categories 9,485 batches inspected and 104 regions 19 of materials

batches of non-Party A-designated suppliers，with a groups of materials 140 brands found, involving a total of RMB 163 total of 2,384 sampled with a compliance 3,598,100 rate of 97.69%

048 Country Garden Holdings Company Limited

2 Supplier training cording to the contract, the construction party must sign a tripartite contract Country） Garden is committed to building a "community of shared responsibili- with the material supplier designated by Party A, and is explicitly required not ties", integrating the concept of corporate social responsibility into all aspects to change suppliers after establishing a cooperative relationship. If the con- of the supply chain and guiding suppliers to fulfill their social responsibility. We struction party purchases materials from a supplier outside the scope desig- have carried out supplier training sessions and exchange conferences at least nated by Country Garden, it will constitute a breach of contract and Party A will once a year, focusing on anti-corruption and quality control, so as to continu- require rectification and return of the materials and impose a penalty of 30%- ously improve the quality of our suppliers and provide safe and reliable quality 100% of the purchase amount of that batch of materials for breach of contract. products to our customers. INTEGRITY IN PROCUREMENT In 2020, Country Garden organized sustainable development and quality up- Country Garden has adopted a series of measures to prevent supplier corrup- grading training sessions for all suppliers; each region organized training tion from within the group and beyond workshops on product quality, safety management, and other aspects as well ： as supplier exchange conferences according to their respective demands, in order to strengthen the foundation of responsible supply-side communication and join hands with suppliers to grow together. Preventing supplier corruption from inside the group:

Case｜Supply-side exchange, moving forward Require every new procurement center employee to sign the "Country Garden Integrity Agreement" together to regulate the business connections between employees and the enterprises set up by their close relatives. In 2020, Country Garden carried out quarterly discussion activities for construction units, and Tan Dongyue, president of the Lunan region, invited all the general contracting parties of the projects under Preventing supplier corruption from the construction in the region to participate. With the goal of win-win cooperation and supplier side: mutual benefits, problems were raised and solved during the meeting, and a Each supplier is required to sign the "Country regional case database was established Garden Supplier Integrity Requirements", which to facilitate longer-term cooperation and sets corresponding rectification measures for development between the two sides. Lunan Regional Supplier corrupt behavior. Meeting

Preventing supplier corruption in the COMBATING COUNTERFEIT AND SUBSTANDARD PRODUCTS business process: Country Garden attaches great importance to combating counterfeit raw materials and products, and the Group has formulated the "Counterfeit and Shoddy Products On-site Verification Manual", which serves as the basis for pay attention to supplier qualification during the on-site inspection of Party A-designated and Party A-supplied materials. inspection, and do not hire those with poor re- Country Garden’s material procurement mechanism requires that materials cords; strictly control costs and break down pric- be purchased from designated suppliers and designated channels; in addition, es when pricing, so as not to give suppliers the the supplier inspection system also requires suppliers to verify whether there opportunity to be corrupt. are problems with their own materials.

We require the personnel responsible for procurement in each region of the country to re-inspect the materials when conducting project acceptance. Ac-

049 2020 Sustainability Report

Case｜“Smart Supplier Platform”

In order to avoid unfair competition and corruption and bribery in the process of supply chain operation,in 2020,Country Garden launched the "Smart Supplier Platform", which automatically identifies suppliers' affiliations by connecting third-party platforms such as "Tian Yan Cha" to determine whether there is an affiliation with Country Garden's employees or other suppliers in the pool. In addition,the Group’s internal control team would randomly check bills and documents for verification and to screen possible problems.

SPEARHEADING DEVELOPMENT OF THE INDUSTRY

Country Garden is committed to leveraging its strengths to promote the development of the industry and to seize new cooperation opportunities through active external cooperation and exchanges. In 2020, we built strategic partnerships with multiple enterprises to jointly transform and upgrade industry products and services, working hand in hand to achieve mutual benefits.

In addition, in order to better promote cooperation between industry, aca- Case｜ Enterprise cooperation demia, research, and application, we have joined hands with Tsinghua Univer- sity, Hong Kong University of Science and Technology, and West Lake Univer- sity to establish joint research institutes, focusing on joint R&D in areas such as construction robotics and intelligent construction, and established strategic On October 19, 2020, Country Garden and Chin Data Group formally cooperation with industry-leading companies such as Huawei and Accenture. signed a strategic cooperation agreement to research intelligent delivery At the same time, Country Garden vigorously pursued international cooper- applications in equipment manufacturing while being committed to inte- ation. In 2020, it cooperated with a number of research institutions and man- grating the resources from energy generation, transmission to distribu- ufacturing companies in Asia, Europe, and Africa in the area of agricultural tion to improve energy use efficiency and create a green energy-saving technology development and application, including: urban complex. Research on basic plantation data in crop production areas around the world where multi-harvest per year is possible. Research on the agricultural industry in Indonesia. Analysis and trial planting research on a million hectares of unmanned farms in Madagascar. Facilitation of a sovereign guaranteed loan for a 4,000 hectare hybrid rice seed production base project in Madagascar. Sponsoring Wageningen University in the Netherlands for the 2nd Urban Greenhouse Challenge.

Signing a strategic cooperation agreement with Chin Data Group

050 Country Garden Holdings Company Limited

GREEN PRODUCTION

COUNTRY GARDEN 08 THE GUARDIAN

Feature｜ Living in a Green 053 Environment -Harmonious Co-existence of People, City and Nature Environment Management 055 Sustainable Buildings 056 Green Construction 057 Green Operation 059 Green Leasing 061 Green Office 061 Green Products 062 Tackling Climate Change 063 Biodiversity Protection 064

OVERVIEW

Country Garden is committed to continuously upgrading green technologies and invests heavily in the research and development of green buildings in an effort to actively fulfill our responsibility to protect the environment as a corporate citizen. We consistently implement the measures, including green construction, green operation, and green office. We are taking effective measures to fight against climate change and promote biodiversity and protect our common homeland.

051 2020 Sustainability Report

TOPICS DISCUSSED IN THIS CHAPTER

SUSTAINABLE DEVELOPMENT SDGs DISCUSSED IN TOPICS DISCUSSED IN THIS THIS CHAPTER CHAPTER Green building and green community Green technology innovation CLEAN WATER AFFORDABLE SUSTAINABLE CLIMATE LIFE BELOW AND SANITATION CLEAN ENERGY CITIES AND ACTION WATER Energy conservation, emission 6 7 11 COMMUNITIES 13 14 reduction, and green operation Waste treatment and recycling Use of water resources and sewage treatment Biodiversity Addressing climate change LIFE ON Use of environmentally friendly LAND materials 15

052 Country Garden Holdings Company Limited

FEATURE ｜ LIVING IN A GREEN ENVIRONMENT -- HARMONIOUS COEXISTENCE OF PEOPLE,CITY,AND NATURE

The harmonious coexistence of human beings and cities as well as cities and the nature has always been what Country Garden tends to achieve during the designing process. Country Garden has upheld the commitment made to developing green lands and has always respected the ecological red lines. We regard them as to where we start in each of our projects and our The landscape is fully leveraged to avoid damage responsibility. on the natural landscape from modern construction:

Mountain torrents are taken into consideration when designing projects in mountain areas. Flood- water drains are put in to the design as well as low-lying artificial lakes at the upstream of the reservoir to handle floodwater draining, desilting, and function as part of the landscape at the same time, PROJECT DESIGN both protecting the reservoir and drain off floodwater effectively.

The design combined the natural landscape in the surrounding area, putting the natural mountains and rivers into part of the scenery of the project:

Native plants suitable for local soil and climatic In the project, the lake becomes part of the scen- conditions are selected to ensure an ecological ery, while twisting mountain roads are designed as environment for plant growth: part of the marketing plan so that clients can visit and gain more understanding of the project. For example, in the sponge city design, we choose drought-tolerant species to ensure that plants can grow well during the rainy season as well as in normal times, and the ability of sponge measures to regulate and store water can be realized.

PROJECT CONSTRUCTION

Plants are introduced rationally and diversely:

Multiple types of plants are cultivated to form a multi-level plant community consisting of arbor, shrub, and grass, which enriches the biodiversity in the ecosystem.

053 2020 Sustainability Report

ECOLOGICAL CONSTRUCTION OF ACADEMY OF RURAL REVITALIZATION PROTECTION OF THE OLD VILLAGE OF TEA-HORSE ANCIENT TOWN IN YINGDE CITY There is an ancient post road in the middle of the North Block Project of Coun- Lianzhang Village is located in the southeast of Lianjiangkou Town, Yingde City, try Garden·Tea-Horse Ancient Town. As a well-preserved ancient tea-horse Guangdong Province with mountainous terrain. Country Garden located at the road site in Qingzhen City, the "Black Nishao Ancient Road" and "Black Nishao Academy of Rural Revitalization in the valley. In the planning and design stage, Archway" were listed in the 7th batch of national key cultural relics protection the mountains within the red line were planned to be retreated so that the units. water system can be reserved and used, the original natural relationship between the mountains and water can be continued, and large-scale digging and In order to preserve the original appearance of the ancient villages and ancient large-scale filling can be avoided. The buildings are laid out along the valley roads, Country Garden has implemented the protection strategy on ancient topography to reserve land for future construction, and the layout is flexible post roads, which follows the rules of adapting to local conditions, and in-depth and sustainable. investigation has been conducted to the topographic and geomorphic characteristics of the base. The ancient post road was formed as the ecological and Country Garden makes reasonable use of the topographical height difference, cultural protection corridor, and the ecological space network with the ecolog- and a balance of excavation and filling is achieved in the building drop-level ical lake and rain flood corridor as the skeleton was constructed. setting. The company also effectively reduces the use of earthwork. In addition, we use constructed wetlands to treat domestic sewage, achieve biodeg- radation of pollutants, increase green landscapes, adjust the climate, provide habitats for animals, and achieve harmony between human beings and nature.

Academy of Rural Revitalization Tea-Horse Ancient Town

Lianzhang Village 054 Country Garden Holdings Company Limited

ENVIRONMENT Case｜Management System of Investment MANAGEMENT Information In order to dig into the value of cities and communities more effectively, In 2020, we upheld ethics, social responsibilities and transparency as we ad- Country Garden has adopted the investment information management dress environmental issues, and continue to implement environmental pro- system and developed an intellectual analysis platform. After information tection as a principle that guides our operation and management. We strive of each site is imported into the information system in the project acquire- to reduce the environmental footprint generated by our business and adopt ment and decision-making stage, the system will immediately give the ref- sustainable building and operational practices in our projects. We stand ready erence value for investment based on related variables as well as param- to contribute our efforts to sustainable development and biodiversity. eters. With digitized information assisting the decision-making process, the empirical judgment will be improved so that we can create a better and more valuable community for our clients. ENVIRONMENT MANAGEMENT SYSTEM

Country Garden strictly conforms to the Law of the People's Republic of China on Environmental Protection, Law of the People's Republic of China on the Prevention and Control of Solid Waste Pollution, and other relevant laws and regulations. We have formulated Management Measure for Envi- ronmental Protection within the Group, guiding our work on environmental issues such as energy-saving, water-saving, pollution control, waste classification, greenery, and biodiversity conservation. In addition, Country Garden passed ISO14001 and other environmental management system certifications and has implemented standardized environmental management in all business processes.

PARTICIPATION IN THE SUSTAINABLE COMMUNITY DEVELOPMENT

Since the early stage of project development, Country Gar- den has attached great importance to the participation of the community itself and its residents’ needs. It has also combined project development with the local development plan, effectively realizing urban revitalization, industrial upgrading, and economic development as well as promoting the sustainable and healthy development of the community.

ISO14001 Environmental Management System Certification

055 2020 Sustainability Report

SUSTAINABLE BUILDINGS

A STANDARDIZED SYSTEM FOR SUSTAINABLE BUILDINGS

To further raise people’s living standards, advance green buildings and accel- We have actively carried out research into green building standards and par- erate healthy development, the Chinese government has published a series ticipated in the development of green buildings, low-carbon buildings as well of standards, including Green Building Evaluation Standard GB/T 50378-2019, as other sustainable development buildings in an in-depth manner. We have and Technical Standard for Nearly Zero Energy Buildings GB/T 51350-2019. A constantly improved the green building standard system of the group, com- number of provinces also issued their local green building assessment stan- prehensively implemented the concept of sustainable development, and added dards in 2020. Country Garden follows the national trend and adjusts to local to the content of sustainable buildings. In 2020, we carried out the compilation standards by revising and updating the Design Guidelines for Country Garden work of the National Standard Selection Library for Green Building Policies, Green Buildings and other internal standards and guidelines in a bid to create the Analysis and Solutions to Optimizing Floor Sound Insulation as well as a green and healthy living environment. other guides, which laid the foundation for implementing standard sustainable libraries, accurately catering to the local standards for green buildings as well as improving the sound insulation of resident buildings.

CERTIFICATION FOR SUSTAINABLE BUILDINGS

Country Garden is committed to developing sustainable development buildings and constantly raising the number of projects awarded certificates of both international and national level for sustainable development buildings as well as the size of project area recognized as green buildings.

In 2020, Country Garden’s 64 projects were constructed according to national green building standards, among which 46 are certified as GB green buildings. Among these projects, 4 are New GB 1-Star projects, with a total area of 444.7 thousand sq.m and 16 are New GB 2-Star projects, with a total area of 2.5865 million sq.m. 28 projects are GB 1-Star with an area of 6.8141 million sq.m. 16 projects are GB 2-Star with an area of 2.5707 million sq.m. In 2020, Country Garden constructed 6 projects according to LEED standards with an area of 39,454 sq.m. In 2020, Country Garden constructed 111 sponge city projects with a floor area reaching 7.7682 million sqm.

Cumulative number of buildings that meet national green Cumulative construction area of buildings that meet national green building stan- building standards dards (10,000 sqm.) 936 , , 872 19 959 21 201 , 755 15 128 , 674 , 14 008 642 , 13 282 586 11 817 , 217 4 842 , 257 , 7 011 225 , 6 495 192 4 219 , 166 3 178 25 623 3 5 5 133 182 182 0 0 By the end By the end By the end By the end By the end By the end By the end By the end of 2017 of 2018 of 2019 of 2020 of 2017 of 2018 of 2019 of 2020

National 3 star green National 2 star green National 1 star green In total National 3 star green National 2 star green National 1 star green In total construction construction construction construction construction construction 056 Country Garden Holdings Company Limited

RESEARCH AND TRAINING ON SUSTAINABLE BUILDINGS

In 2020, Country Garden has carried out many pieces of research on sustain- focused on the exploration and practice of passive building technology and able buildings, with topics covering green buildings, healthy buildings, passive achieved results in this area. A total of 3 authorized patents have been certi- ultra-low energy buildings, among others, and has controlled the quality, fied and three papers have been published. contracts, and costs of sustainable buildings. Combining its own majors and cooperating with scientific research institutions and advanced education In addition, Country Garden also invests significantly in staff training. On the institutions, in 2020, our Sustainable Development Institute has completed one hand, we organize internal training sessions like 2020-The 16th Green researches including "Research on the Mode and Path of Large-scale En- Construction Training Conference and Implementation of Green Building terprises (Group) Promoting Prefabricated Buildings", "Commercial Office Standards in All regions as well as Training on the Implementation of Sponge Building Energy-saving Technology Testing", and "Technical Consultation for City Concept in The Lake of Monet Project of Country Garden, where em- Prefabricated Building Industry Base Construction" and other topics together ployees can systematically learn green technologies and sponge city de- with the Ministry of Housing and Urban-Rural Development Center for Sci- velopment. On the other hand, we also encourage our staff to participate in ence and Technology and Industrialization, China Building Standard Design external professional training and seminars such as the LEED v4.1 Housing and Research Institute Co., Ltd., Dalian University of Technology, Guangzhou Accreditation System Introduction-A dedicated session at Country Garden as University and other institutions. well as the Exchanges Seminar of Audio Technology Manufacturers to keep themselves updated with the development of the industry. Country Garden insists on carrying out independent innovation, drives production with innovation to solve practical problems in production. In 2020, we

PLANNING AND DEVELOPMENT OF SUSTAINABLE BUILDINGS

Country Garden has integrated sustainable building investment into the company’s strategy, where the company actively pushes forward the R&D of sustainable building products and implementation of related projects in a bid to constantly build the society into an environmentally friendly one.

SHORT-TERM OBJECTIVE Country Garden strictly follows all national and industrial standards including the Green Building Evaluation Standard GB/T 50378- LONG-TERM OBJECTIVE 2019 and the Technical Standard for Nearly Zero Energy Buildings, actively responds to policies concerning green buildings issued by Country Garden plans to continuously improve the rate of projects local governments, and forges ahead of the development of green certified as green buildings and healthy buildings in all its projects building projects. In the meanwhile, we have actively explored our and gradually improve the rate of stars in certification. In the own standards and guidelines for green buildings in an effort to im- meanwhile, we will continue to be more self-driven to update plement the motto of offering green, healthy, and pleasant products sustainable buildings with empowerment by new technologies. We to our clients in every procedure, including architectural design, will adopt technologies that reduce carbon emission and smart construction, and operation. We make key efforts in long-term mon- operating technology, explore new models like passive buildings itoring and research after sustainable buildings are put into use in a through practices, and realize our goal to provide greener, more bid to realize a whole-life-cycle green management system. pleasant, and healthier residential products for our clients.

GREEN CONSTRUCTION

Country Garden strictly follows national standards including the Green Construction Evaluation Standard and has formulated internal systems including Manage- ment Measures on Environmental Protection and Guidelines for Application of New Energy Technology, to effectively manage the environment of the construction sites of our projects. In the meanwhile, we have used a number of green technologies to protect the environment, conserve energy and reduce our impacts on the environment during construction as much as possible. 057 2020 Sustainability Report

Energy Conservation Water resource management

To ensure safety and energy conser- Water recycling devices are installed vation, we use the 36V safety voltage and Turfs are installed to eliminate water LED electricity-saving lamps for lighting and soil erosion as well as solar energy water heaters The draining system at construction We utilize HIM (Hydrargyrum Medi- sites is designed to separate rainwater um-arc Iodide ) timelimit lighting devices and sewage We use current limiter and implement Sedimentation tanks and oil separa- power limiting measures in living areas Energy-saving furnace tors are set up to avoid water resource Water recycling devices in some of our projects pollution Permanent lighting devices are used Wastewater from construction sites to replace temporary ones to reduce are deposited and purified so that it can loss and carbon emission be recycled We promote the reduction of the use of wet construction (ex. plaster-free technique) to consume less water resource

Waste Disposal

Requirements on reducing construction waste are written in the construction contracts Training sessions on waste management are held for construction staff. Contractors are encouraged to recycle construction waste Waste generated on construction sites are categorized, recycled and treated separately Residual waste on construction sites are dumped in garbage station according to the actual demand in different projects. Solid waste is cleaned up regularly after classification Recycled brick slag Installation of oil separator

Dust Pollution Control Building Materials Conservation and the Use of Green Materials

Vehicles are flushed at entries and exits We choose concrete iron, copper prod- of all projects ucts, and other recyclable materials Hoppers of muck trucks are closed at Prefabricated components, including construction sites shear walls, laminated slabs, and stair Spraying devices are installed on all treads are widely used in the construc- walls of construction sites to stop dust tion industry from floating in the air All construction processes use com- All earthworks are required to be cov- mercial concrete and mortar to reduce ered Growing grass on the turf the environmental pollution and mate- climbing frame Turfs are planted near construction sites rial losses We take an integrated approach to civil engineering and indoor decoration

058 Country Garden Holdings Company Limited

Case｜Application of prefabricated building and standardized construction

Country Garden has established a highly standardized component library, apartment library, and building library. It utilizes BIM technology to open up the data flow of the entire industry chain, including R&D, design, production, transportation, and construction and realizes mass cus- tomized production of PC components through automated production lines. Construction robots and intelligent construction equipment are used on construction sites to reduce waste of building materials, improve building quality, and achieve green consumption reduction throughout the whole construction process.

HOTEL OPERATION GREEN OPERATION Country Garden Hotels Group has formulated Green Hotels Management Standards, which stipulates that daily hotel operation should focus on green Country Garden not only implements the concept of green development in development, energy conservation, and emission reduction. Also, our hotels the project development and construction process but also comprehensively conduct regular energy metering analysis where the ratio of energy consump- implements green operation measures in various business operations, includ- tion is written into the 2020 Performance Assessment of Functional Depart- ing property management, hotel operation, commerce, culture, and tourism ments so that energy conservation results are related to staff performance. project operations, and is committed to providing customers with green and We have signed Garbage Recycle Agreement with renewable energy compa- environmentally-friendly services. nies. In addition, hotels of Country Garden have renovated in a number of ways as follows, which include: ENERGY CONSERVATION AND CARBON Upgrading of the hot water system Use of laminated glass EMISSION REDUCTION IT-empowered operation Use of frequency conversion AC system Country Garden attaches great importance to energy conservation and emis- Use of AC system powered by water-steam energy in resorts sion reduction in its business operations. We apply new energy technologies Smart and automatic meter reading and monitoring instead of artificial me- and implement energy-saving management methods, and use a combination ter reading of technology and management to effectively control the use of energy, reduce Separated packaging of sanitary products for guests and encouraging carbon emissions, and achieve the goal of low-carbon operations guests to bring and use their own toiletries Concentrated operation of laundries so that the steam condensation wa- PROPERTY MANAGEMENT ter can be collected to save energy Country Garden works to build communities with smart and anti-pollution technologies. We actively extend energy monitors to all our properties and take effective measures to reduce energy consumption. To ensure an orderly In 2020, Country Garden Hotels and efficient operation process, our property managers would undergo profes- Group carried out the energy-sav- sional induction training to familiarize themselves with the operation of all the ing renovation of old lighting devices, especially those of green building technologies such as solar power, equipment, saving a total of sprinkler irrigation, and rainwater harvesting. MANAGEMENT OF COMMERCIAL PROJECTS kWh In 2020, Country Garden’s business management and operation section estab- 6, 000 lished a special task force for energy saving and consumption reduction, which carried out a number of measures including preparation of work plans, formu- and covering lation of implementation plans, dynamic monitoring of various energy-saving of the renovated and consumption reduction indicators, and adjustments to night duty lighting, 85% lighting Upgrading of the hot water system in interlocking operation of double-row freight elevators, frequency conversion Country Garden’s hotel in Zhaoqing and transformation of escalators as well as adjustment of LED operation City plans. Through this series of measures, the energy consumption of commercial operation projects in 2020 was significantly reduced compared with that of 2019, and effective energy saving has been realized.

059 2020 Sustainability Report

WATER CONSERVATION AND BETTER AIR QUALITY WASTE DISPOSAL Country Garden attaches great importance to residents and hotel guests’ health and provides a green, pleasant, healthy, We lay stress on the efficient use of water resources in our and quality residential environment where every client can operations. breathe clean air. Water efficient sanitary wares are used in all our buildings In our commercial projects, we have installed a mechanical to increase the utilization efficiency of water resources; ventilation system in the basement, main chimney shafts for Water-saving pipelines and accessories are adopted. cooking fumes, and household flues and lampblack purifiers Leak-proof valves, anti-corrosive, durable tubing, and pipe to dispose of waste gas; fittings are used; Scientific ecology management technologies are intro- In areas rich in rainwater resources, water collection, and duced to improve the indoor environment in our hotels. On top storage systems are installed to collect rainwater, which will of installing fresh air ventilators that can reduce the energy then be used for irrigation and street cleaning; consumption of air conditioners and strengthen natural venti- Efficient water-saving systems consisting of sprinkler lation, Country Garden also installed pressure relief pipes to irrigation and trickle irrigation techniques are employed for better control sewage wells and septic tanks that often pro- greenery irrigation in our communities; duce foul odor. Use non-toxic and non-hazardous high-performance products for daily washing and cleaning chemicals.

Moreover, we also pay attention to sewage disposal. GREEN INITIATIVES Drainage systems in our communities divert rainwater from sewage to collect rainwater and finally discharged it into the Country Garden advocates green consumption in hotel oper- municipal drain networks. Domestic sewage is treated in ations by carrying out campaigns to raise awareness of ener- three-septic tanks to make sure it meets Level III national gy-saving and consumption reduction, waste classification, Integrated Wastewater Discharge Standard (GB8978-1996) and other green environmental protection concepts. We also before it flows through the municipal sewage pipelines to join hands with our employees, customers, suppliers, and municipal sewage plants for treatment. other partners to fulfill environmental responsibilities. The following measures are mainly adopted:

WASTE DISPOSAL AND Offering training courses on the management of green hotels for new employees to raise their awareness of providing RECYCLING green services and encouraging guests to engage in green consumption; Country Garden continues to strengthen waste management Encouraging our clients to doggy bag leftovers and drinks; during the project operation process, puts forward explicit Substituting biodegradable boxes for Styrofoam boxes; waste disposal requirements to its suppliers during the pro- Changing sheets, pillowcases, and bath towels less fre- curement process, and considers purchasing durable and quently for long staying guests; environmentally-friendly products so as to reduce the gen- Putting up posters to publicize energy conservation and en- eration of waste. vironmental protection in offices, hotel lobbies and shopping malls; We follow the local requirements for waste classification in Organizing members of the Green Activity Group to pro- commercial operation projects, especially in those in Shang- mote learning and experience sharing on eco-efficient busi- hai. Third-party waste treatment service providers are ness with peer hotels. hired to classify waste through bidding. In the meanwhile, according to the cities’ requirements on creating Culturally Advanced Cities, residual waste classification is implemented in our projects. In addition, we actively cooperate with the government in setting different trash bins for different kinds of trash, namely recyclables, kitchen waste, hazardous waste, etc. We also conduct campaigns to raise awareness among tenants on waste classification on a regular basis

060 Country Garden Holdings Company Limited

GREEN LEASING

Country Garden actively promotes green leasing, conveys the development In order to better engage tenants in green operations, we plan to formulate concept of low-carbon and environmental protection to tenants, and promotes Green Environmental Protection Agreement for Tenants with the goal of es- environmental benefit plans with tenants by enhancing their participation. tablishing long-term sustainable development partnership with tenants, and Through formulating guidelines and conducting internal training, we conduct- use this agreement as a code of conduct for tenants' operations and post the ed sustainable operation advocacy education for the property operation team, agreement in the store. We encourage tenants to: including introducing best practices in the industry, communication channels for tenants, etc., and set feasible green leasing goals.

Incorporate environmental management into the daily operation process, Participate in public welfare activities for environmental protection and sus- including the provision and use of environmentally-friendly, healthy and safe tainable development; products and services; Comply with various emission and waste management requirements, and Low carbon and environmental protection in order to benefit from the in- cooperate with the environmental performance monitoring work of the prop- vestment in improving energy efficiency, so that operation and management erty operation team. are in line with the sustainable development concept;

GREEN OFFICE Substituting traveling with video conferencing to reduce greenhouse gas emission caused by traveling; Country Garden has always implemented the practice of energy saving and Promoting a paperless environment in the workplace through the unified emission reduction, and guided employees to develop good working habits, management of office suppliers like pens, ink, and paper to reduce the con- thereby building a long-term green office mechanism. The group headquarters sumption of natural resources while improving efficiency; issued the Eight Regulations on Implementing Green Office, Energy Saving and Reducing the use of standalone printers and setting duplex printing as the Consumption Reduction, and the Management Measures for Paperless Office default to cut down the consumption of paper. (Trial) to regulate employees' work behaviors. The management measures mainly specify the following measures: In addition, Country Garden puts in place eco-friendly measures to reduce the consumption of energy and resources both at the headquarters and subsidiaries. These measures include: Reminders on Energy Saving Measures in Country Garden’s Offices Designing energy-saving signs in the office area, and using signs of warm reminders to replace boring old texts to promote energy conservation and consumption reduction; Checking the usage of water tanks, refrigerators and other facilities and maintaining them on a regular basis, making night patrols every day and reporting the results to make sure the lowest energy consumption when people are off work; Adding signs on the light switch panel as guidance for employees; adjusting the number of lights in daylight mode and only keeping the lights at main en- trances on and others off when lighting is barely needed; Two approaches of control on lighting are taken (infrared sensors and dura- tion controller) in the pantry to reduce energy consumption; Hand sanitizer foamers are placed in the restrooms and the water outlet an- gle of faucets is lowered to avoid waste of water; Monitoring and controlling indoor temperature through the Building Auto- mation System for air conditioners, and posting tips of temperature adjustment on remote controls to keep the indoor temperature comfortable while saving energy for the good of the environment; Printing business cards with paper certified by FSC; Carrying out regular maintenance of office facilities to extend their service life and make efficient use of resources. 061 2020 Sustainability Report

Case｜Office waste recycling

In 2020, The Country Garden Headquarters launched the waste recycling plan themed “advo- We sorted 1,095 tons of garbage cating environmental protection and build a beautiful headquarters”. We sorted 1,095 tons of garbage and collected 4.26 kg of used batteries. In the meanwhile, during the office relocation, we collected dumped stationery, including clips, binder clips, file pockets, pens, and paper so collected 4.26 kg of used batteries as to recycle them.

GREEN PRODUCTS Case｜Qianxi Group replaces plastic packages with environmentally-friendly paper products. Country Garden continues to strengthen the R&D and promotion of green Qianxi Group has 100% refrained from using plastic packages but started products, commits itself to reducing product energy and resource consump- to adopt paper cups, paper bags, paper straws, and other green materi- tion levels, minimizing the use of harmful substances, continuously bringing als. leading green products to the market, and strengthening Country Garden’s corporate responsibility for environmental protection.We follow the industry’s Our paper package for clay pot rice was recognized by the 2021 iF design leading environmental product standards, give priority to green environmen- award. It uses technically-improved paper straws and uses food contact tal protection materials and advanced technology, and further reduce the base paper as the main material, to which other recyclable waste materi- environmental impact of product manufacturing and consumer use through als (such as bagasse, wheat straw, etc.) are added to reduce the amount reasonable design. In addition, we ensure that the group’s furniture, bathroom, of wood used in the paper-making process. Paper straws can not only be and other products are 100% in line with the national environmental protection recycled but can be completely degraded within 3-6 months after use, standards. which reduces white pollution.

Case｜ Creating Green and Environmentally- Friendly Products

MODERN U HOME PRODUCTS The products of Modern U Home are made of selected green and environmentally-friendly materials. PP film that contains halogenide, methanal, and other toxic substances is avoided and E1-level MDF boards are used instead.

BLUE BALLOON SANITARY PRODUCTS The Blue Balloon smart toilet adheres to the national Level-1 standard for water usage efficiency, which reduces average water usage to 4.0 liter without compromising user experience, outperforming its competitors in terms of water usage.

We also attach great importance to green product packaging. We reduced un- necessary packaging materials through applying leading technology and optimizing packaging design. At the same time, we actively apply paper packaging materials, sugarcane pulp packaging materials, and other green packaging products to reduce the environmental burden caused by the product packaging process. Paper package products of Qianxi Group

062 Country Garden Holdings Company Limited

TACKLING CLIMATE CHANGE

As a diversified company, Country Garden is dedicated to tackling climate change effectively by implementing mitigation and adaptation measures to minimize the impact of climate change on its business.

Climate Change Mitigation

More research and practice in green building; introducing the concept of passive housing; improving energy efficiency of buildings; Improve energy management and reduce carbon emissions in construction; Take climate change into consideration in procurement and encourage the use of low-carbon and eco-friendly materials; Encourage staff, suppliers, homeowners, tenants and other clients to cut carbon emissions in daily business activities; Increase the use of solar energy; Respond to the national target of peaking carbon dioxide emissions by 2030 and realizing carbon neutrality by 2060 by formulating a carbon emission reduction strategy of the group.

Climate Change Adaptation

Assess the risks and opportunities of climate change on business and finance; Improve project design to prevent and mitigate the possible damages caused by climate change to newly constructed projects; Formulate the Management System on Safe Production of the group, which institution- alizes emergency management and is strictly implemented during the whole production process; Improve work process and carry out appropriate measures to prevent and mitigate the possible damages to our properties.

Case｜ Coping with extreme weathers

In order to improve staff’s coping strategy and capability against extreme weathers, the Commercial and Culture Tourism Group compiled the Emergen- cy Plans for Properties and regularly holds fire drills, flood drills, and emergency rescue drills, which are reviewed and problems occurring during the whole process are analyzed so that the emergency plans can be optimized.

At the same time, in order to better respond to climatic disasters such as cold winter waves in the northwestern area of China and effectively reduce public safety risks, the group optimized and upgraded construction standards in winter, and compiled guidelines such as Analysis of the Key Points of Construction and Maintenance Control in Winter in Northern Area of China, which carries out detailed analysis on key points such as construction process, plan implementation and process control.

063 2020 Sustainability Report

BIODIVERSITY PROTECTION In 2020, the EIA coverage rate of Country Garden and its construction projects reached 100% Country Garden strictly abides by the Land Management Law and other laws and there were no incidents that have a significant negative and regulations on land development, conducts an ecological assessment in impact on the environment and natural resources. the early development stage of projects, and has taken the habitat of animals and plants and ecological red lines into considerations to ensure that the whole process of projects is in line with the principles of sustainable development. For projects involving nature reserves, cultural reserves, and other ar- FULFILLING COMMITMENT WITH OUR PARTNERS eas, we strictly adhere to the bottom line and avoid developing projects within the scope of protected areas listed in World Heritage and IUCN Category 1 to Country Garden actively participates in ecological protection activities around 4. We will only carry out construction and commercial business on plots after the world to fulfill its commitment to protecting biodiversity and cooperates passing the government’s assessment on the projects’ impacts on biodiversity. with partners inside and outside the industry and the academia, such as AES, We also try to reduce the potential adverse impacts of business operations on an environmental consultancy, DHI, a hydrological consultancy, and many pro- biodiversity. fessional scientific research institutions such as Universiti Putra Malaysia in a bid to jointly explore the forest city project and protect the natural and ecological environment.

CASE｜Marine Ecological Protection Project in Malaysia

In 2020, the Country Garden Forest City Project, Universiti Putra Malaysia, and local fishermen communities continued to cooperate in marine ecological protection:

They implemented a seagrass conservation plan, which monitors seagrass protection areas in the sea near the forest city; The first phase of the exhibition hall of the Forest City Ecological Muse- um was completed and opened to promote the construction of local environmental and ecological science and education; “Go Green” Residents and Employees Environmental Protection Plan was launched that connects forest city employees, residents, aborigines in the surrounding area, NGO organizations and surrounding schools and institutions to organize environmental protection public welfare activities. Ecological Museum in the Forest City

DEVELOPMENT OF GREENLAND AND RESTORATION OF BROWNFIELD Country Garden has always adhered to the concept of harmonious coexistence of human, city, and nature in its design, fulfilled its commitment to green space development, and tried to avoid developing farmland and green space. If the development is necessary, we obtain approval from relevant departments in advance and minimize the impact on the green space and surrounding ecosystems in the subsequent development process. For wasted industrial plant plots with soil pollution problems, we actively communicated with the government, built a risk assessment system for contaminated plots and implemented soil remediation plans in accordance with relevant regulations, and developed brownfield projects in compliance with regulations after passing third-party review.Besides, Country Garden is committed to strengthening the protection of the ecosystems of forests with actions to reduce tree-cutting activities and hit the targets of eco-protection.

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Country Garden Holdings Company Limited

ALWAYS PUTTING THE PEOPLE FIRST

COUNTRY GARDEN 09 THE COMPANION Feature｜Long-term 067 Effective Prevention and Control as the Foundation for Restoration of Operation Moral Character as the Top 068 Criteria for Recruiting Respecting Professionals 072 Talent Development as a 075 Priority Care for Employees 083 OVERVIEW

Country Garden always holds the philosophy that people and society are front and center of everything we do. The Group regards our employees as the most valuable treasure. In terms of recruiting, we give priority to both the virtue and the capability of candidates by committing ourselves to creating an equal, inclusive, warm and positive platform for our employees and a safe and healthy professional environment. In addition, we insist that the cultivation of talents should come first and we should attentively care for the talents. The Group sets up a training system that covers all fields and the whole business cycle. By proposing a philosophy of grid development for the professional talents, our care for the employees has always been thoughtful and warm. In 2020, Country Garden stood together with all the employees through storm and stress, putting first the health and safety of employees. We overcame the challenges brought by the COVID-19, resumed our work and production in an orderly way, and helped employees enjoy a healthy life and care-free workplace.

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TOPICS DISCUSSED IN THIS CHAPTER

SUSTAINABLE DEVELOPMENT SDGs DISCUSSED IN TOPICS DISCUSSED IN THIS THIS CHAPTER CHAPTER Talent recruitment and team building Employee training and development GOOD HEALTH QUALITUY GENDER DECENT WORK REDUCED A ND W ELL- EDUCATION EQUALITY AND ECONOMIC INEQUALITIRS Employee health and safety 3 BEING 4 5 8 GROWTH 10 Employee interest and care Equal employment and communication with employees Prohibition of child labor and forced labor

066 Country Garden Holdings Company Limited

FEATURE ｜ LONG-TERM EFFECTIVE PREVENTION AND CONTROL AS THE FOUNDATION FOR RESTORATION OF OPERATION

At the beginning of 2020, the COVID-19 pandemic swept through the world, UNINTERRUPTED CARE FOR EMPLOYEES DESPITE OF THE QUARANTINE which had a huge impact on our employees and the businesses of Country Country Garden was concerned about our employees at the frontline of the epi- Garden. The Group has cared for every employee all along. At the very begin- demic. In the most difficult time of Hubei Province, the Group sent much-need- ning, we swiftly launched actions to set up an emergency leadership team of ed materials such as food and masks by post to the families of our employees epidemic prevention, formulated a comprehensive mechanism of epidemic as material support in spite of the fact that the express delivery was out of ser- prevention and control, and made sure that our employees were given full pro- vice and the supply of other materials was at a standstill. We stuck red hearts tection. on the logistic boxes as an encouragement, thus sent the care and love from Country Garden to our employees. SWIFT ACTIONS SAFEGUARDING EVERY EMPLOYEE Likewise, the Group never forgot employees who were overseas. We lost no Country Garden strictly implemented various policies of epidemic prevention time in raising masks and protective clothing and then send them overseas and control. By effectively using “Yuan Bao”, the Country Garden’s internal so that employees could get full protection. Before employees’ departure for system, we lost no time in delivering the requirement of epidemic prevention foreign countries, we applied for them the vaccination so as to lower the risks and control to every employee and made sure that in our battle against the of being infected. Although we are a million miles away, we will always be with COVID-19, no family of our employees would be left behind. We drew up speed- our employees. ily The Employee Handbook on the Prevention and Control of COVID-19 and made updates on a regular basis, providing guidelines of epidemic prevention for our employees. We extended the holiday, cut down business travels, adopted closed-loop management for office buildings and residential areas, and made dynamic tracking of the health status of every employee. Besides, we made immediate procurement of masks and disinfectant as well as other epidemic prevention materials, established a remote office system to fully prepare ourselves for the recovery of work and production.

Delivering food to staff in quarantine

Issuing Epidemic Prevention and Control Notice Care package for Hubei staff

067 2020 Sustainability Report

WARM AND ATTENTIVE CARE TO GUARANTEE THE ORDERLY RECOVERY OF WORK AND PRODUCTION With the effective containment of the COVID-19 in mainland China, Country one for every Hubei employee. Workplaces were thoroughly disinfected and Garden launched a few measures to actively promote the recovery of work and cleaned on a regular basis, unfolded preparations for the recovery of work production. The Group arranged special vehicles for employees from Hubei and production, tested production equipment and facilities, and strengthened Province to come back to their jobs. By putting up posters, providing fruits and monitoring and management of safe production. While working on the epi- snacks, and offering nutritious meals, Country Garden created a welcoming demic prevention and control, the Group went all out to make sure an orderly environment for returning employees from Hubei Province. Meanwhile, we resumption of work and production. prepared abundant prevention materials and started healthy archives one by

Arranging special bus to welcome Hubei employees back to work Carrying out epidemic prevention and disinfection work

MORAL CHARACTER AS THE TOP CRITERIA FOR RECRUITING

Country Garden is dedicated to growing together with more outstanding talents. We consistently improve on our excellent corporate culture as well as equal and inclusive environment to attract talents and provide a big and inclu- In 2020, no illegal employment, child labor, or forced labor was sive platform for talents from all over the world to lift themselves and develop reported. their wonderful professional careers.

By the end of 2020, women have accounted for

FAIR RECRUITING PROCESS In 2020, the pay 21.22% ratio of male and female employees Country Garden strictly complies with the Labor Law of PRC, the Law of PRC of the Group’s management and the proportion is equal to on Employment Contracts, Provisions of PRC on Prohibition of Child Labor, and of female employees in senior management has other laws and regulations. In accordance with our in-house Standard Guide- been lines for the Talent Recruitment V1.0, Country Garden never differentiates ap- 1:1 plicants by their gender, religion, ethnic groups, family, and health conditions. The Group also prohibits child labor and forced labor to ensure a legitimate 4.14% and fair hiring process and signs labor contracts with all the employees.

068 Country Garden Holdings Company Limited

COUNTRY GARDEN’S RECRUITMENT IN 2020

GENDER RANK

Senior Middle management Female management 782 18,093 Male 34,988 19.27% 37.26% 0.83% 58,911 62.74% General staff

79.90% 75,024

REGION AGE

Hong Kong and Macao 41-50 Over 50 34 7,763 1,899 Overseas 8.27% 0.04% 2.02% Mainland China 1,286 30 and under 1.37% 31-40 92,579 98.59% 39.23% 47,396 36,841 50.48%

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DIVERSITY AND INCLUSION

Country Garden strives to provide a harmonious and diversified working HUMAN RIGHTS PROTECTION environment for employees and opposes all discrimination. We help As one of the members engaging in the United Nation’s Global Compact, underprivileged people to create opportunities of professional development. At Country Garden operates with reference to the fundamental principles of the the same time, in business operation, we take proactive measures to ensure UN Global Compact as well as initiatives at home and abroad with regard to that the human rights of employees are guaranteed. human rights and employee rights. In the operation of the Group, we attach importance to both human rights protection and business operation. Each year, ANTI-DISCRIMINATION Country Garden communicates with related parties concerning the progress Country Garden promises to provide a discrimination-free work space. of the UN Global Compact by releasing our commitment and actions in the We have drafted the Employee Guidebook, the Employee Codes of field of human rights. Moreover, we include the items of employees’ working Counduct and the Acccountability Measures for Violation of Rules and time and working environment into the labor contracts. In the Country Garden Regulations by Employees of Country Garden, which clearly stipulates Employee Performance Appraisal Measures, we also introduce the content of that any act that constitutes discrimination or harrasment (sexual or non- the protection of human rights so as to further implement the work of human sexual) is prohibited. Fresh recruits are trained to fully understand the rights protection. In addition, Country Garden respects employees’ free rights aforementioned rules and are impressed upon the procedures for reporting in joining associations, safeguarding their rights in participating in different and appeal on violations, thus protecting the lawful rights of employees. organizations, labor unions, and employee representative conferences, etc. Up to now, Country Garden has set up its labor union and various employee We strive to promote gender equality and advocate equal pay for equal work. associations, ensuring employees’ free rights of joining associations. We have been constantly raising the proportion of women among senior management. The traditions and rituals of ethnic minorities are valued and respected in our company with special food windows set up at our canteens. CAREERS AT COUNTRY GARDEN HIRING OF THE DISABLED We aim to attract talents from different backgrounds and to become an Talents are the most important treasure of Country Garden and the example of inclusiveness and diversification by providing equal opportunities recruitment of talents is one of the annual key works of Country Garden. We for the disabled as well as a platform where they can excel. Country Garden have set up a full-fledged recruitment system and process and created various HQ and regional offices work closely with local social security bureaus and influential employer branding events. On the basis of recruitment demands neighborhood committees to provide paired-up employment support for the and talents evaluation, we have set up proper jobs and talents development disabled. We provide training and job opportunities for the disabled based on plan so as to enhance the efficiency of talent growth. Thanks to the tools such our labor needs. as a digitized recruitment system, recruitment assistant, and AI interview, we have optimized recruitment efficiency and improved the matching of talents with relevant positions, aiming for higher precision and efficiency. Meanwhile, Country Garden also launches the Super Graduate project, Thousand Talents By the end of 2020, the real estate segment of the Group has employed project, and Future Leaders project to promote our idea of talent development and build our own talent pool. We are also working actively to create jobs for local people. Based on the actual business operation, we also promote 151 localized recruitment. people with disabilities, an increase of 91.1% compared to the number of By the end of 2020, Country Garden’s overseas real estate business (including Hong Kong SAR) has hired 79 76.6% of its workforce locally people in 2019 There were no discrimination and harassment related incidents this year

070 Country Garden Holdings Company Limited

THE "MINJIE (SWIFT)" RECRUITMENT, OPERATION AND MANAGEMENT SYSTEM

SUPPORT EFFICIENCY COST RISK PREVENTION PROFESSIONAL TARGET STRATEGY FIRST AWARENESS AND CONTROL AND ACCURATE

BRAND EFFICIENCY BENEFIT STANDARDIZATION EMPOWERMENT

EMPLOYER PER CAPITA WHOLE PROCESS PROFESSIONAL BRAND EFFICIENCY MANAGEMENT CAPACITY

SYSTEM SUPER GRADUATE HUMAN RESOURCES MANAGEMENT OF ONLINE GOLD MEDAL CHIEF OF A THOUSAND PLANING CHANNELS INTERVIEWER PEOPLE PAYROLL HEADHUNT MANAGEMENT CAREER PLANNER GENERAL PROJECT MANAGEMENT INTERNAL RECRUITMENT EVALUATION CENTER SWORD FORGING EXTERNAL PROJECT NEW JOURNEY PROJECT RECRUITMENT RECRUITING ASSISTANT KPI EVALUATION DIGITIZED RECRUITMENT

TALENT POOL HR SCREENING AND TASK DEVELOPMENT PLANNING MATCH-UP HR STRUCTURE SELECTION

071 2020 Sustainability Report

Case Study ｜Country Garden Continues to Launch High-quality Campus Recruitment and Build up Talent Tool

In 2020, Country Garden adopted a campus recruitment program called we establish “Thousand Talents Plan” to provide a development platform for excellent fresh graduates. Through the cooperation between universities and the Group, we launched a “preparatory” recruitment plan to offer 20 internship positions for better understanding about the group among recruitment stations at home outstanding students. At the same time, we establish 20 recruitment stations at home and abroad for this year’s autumn school recruitment, giving roadshows of the Group while recruiting talents on the spot. As 89% Campus tour of Country Garden a result, we have successfully signed contracts with nearly a thousand excellent fresh graduates, 89% of whom are postgraduates. of whom are postgraduates

RESPECTING PROFESSIONALS

Focusing on human resources, Country Garden creates an atmosphere of shuttle bus for employees, gyms, birthday parties, food festivals, and edu- respecting talents. We provide competitive salaries and benefits, improve cation discount. With these approaches, we satisfy the needs of employees occupational safety systems and measures, and have ears to the voices from in their life and work and offer by creating a caring working environment and employees. The talents can feel respect, thus inspiring sense of responsibility a strong backing for their life. In 2020, Country Garden introduced the online and sense of belongings. platform of “Youfu”, integrating multiple welfare items to the online platform for a one-stop welfare solution for employees so as to optimize the personal experience of employees. WELL-DESIGNED PAYROLL AND

BENEFIT SYSTEM Case Study ｜The Introduction of Online Platform “Youfu” Leads to One-stop Employee Welfare Country Garden is committed to establishing a fair and competitive compensation scheme. According to Country Garden Remuneration Management On October 20 of 2020, Country Gar- System and Country Garden Employee Performance Appraisal Measures, the den officially introduced its online Group sets up an assessment system based on position, market, performance, platform “Youfu”, serving over 30,000 and ability. It provides an all-round evaluation based on fairness and value employees of the HQs as well as created by the employee. As a result, this compensation scheme can play a regional offices. It brings multiple longer-term instrumental role in attracting and retaining talents. compensation functions such as the Welfare Mall and Growth Encour- The Group keeps improving the benefits package of the employees. We strictly agement and enhances employees’ abide by the relevant laws and regulations, including the Regulation on Public sense of happiness. Holidays for National Annual Festivals and Memorial Days, Regulation on Paid Annual Leave for Employees, and Measures for Implementation on Paid Annu- al Leave for Employees of Enterprises. Accordingly, Country Garden provides paid leaves such as maternal leave and parental leave. In addition, based on the national standard, the Group keeps enhancing the benefit level of employees by honoring its commitment to respecting talents and respecting labor. Our care for employees is put in place to cover all fields and every aspect of the operation, effectively raising the sense of happiness and sense of accomplish- ment. Youfu platform of Country Country Garden provides extensive benefits for employees, covering aspects Garden is launched such as subsidies, everyday life, special festivals, and office amenities which include accommodation subsidy, phone bill subsidy, house purchase discount, 072

Country Garden Holdings Company Limited

OCCUPATIONAL HEALTH AND SAFETY

Country Garden attaches great importance to the occupational safety of its employees and takes it as our main responsibility to protect employees’ occupational safety. We set up a systematic safety management system. In 2020, Country Garden further improved its safety system:

The Group released the Management Mechanism Conferences on safe production are held on a regular for Country Garden’s Operation (Trial Version of 2020), basis. Bi-weekly routine meetings are held every two in which safety management mechanism covering key weeks focus on quality safety, circulating regional projects or projects with danger, ten red lines, emergency projects with existing problems; management, and risk warning was updated and further elaborated; We encourage senior management to go to project sites to further incentivize safe production and conduct Every quarter, conferences on safe production are safety drills so that the safety mechanism of Country held at both the HQs level and regional office level, Garden can be effectively put in place. reviewing and summarizing works on safety and planning the development of safety management. We outline Occupational Health & directions and make decisions for Country Garden’s Safety Management System safety management; Certification: ISO45001

Country Garden Occupational Safety Management

As a member of the UN Global Compact, Country Garden supports ten principles stipulated in the UN Global Compact con- Health & Safety Strategy cerning human rights protection and labor. We promise to integrate them into the Group’s strategy. From the height of UN Global Compact, we internalize occupational health & safety work into the formulation of group strategy.

Country Garden takes the initiative in setting goals for the Group’s occupational safety performance. The Groups’ safety Occupational Health & Management Committee sets the ultimate goal of “zero death or injury”; meanwhile, it proposes targets for occupational Safety Goals health and safety, committing ourselves to lowering 20% of death-on-the-job in 2021.

Group President leads a team to construction sites to check the safety work on a quarterly basis, raising awareness within Senior Management Su- the Group and supervising the safe production of the region. Regional President and Regional Operational Head lead teams pervising Safety Work to construction sites to check the safety work once every month, supervising and directing the implementation of safe production as well as the safety management mechanism.

Each year, Country Garden checks the safe production mechanism and safe on-site inspection, assessing the actual imple- Verification Mechanism mentation of the mechanism and making revisions to related items. In 2020, Country Garden issued its Operation Manage- for Safety Measures ment Mechanism Version 2020 (including safe production) and Inspections Measures on Engineering Projects 2020, updating measures concerning health and safety.

Country Garden encourages all the business segments to obtain health & safety management certification and plans to Health & Safety Manage- further expand the number and the coverage of safety certification including OHSAS18001 / ISO45001. Presently, Country ment Certification Garden Agriculture, Bright Dream Robot, and Giant Leap affiliated to the Group have passed OHSAS18001 certification.

In 2020, Country Garden HQ and Regional Offices made concerted efforts in organizing training for safety managers. Safety Manager Training Through standardized curriculum and training on the core management capability, the capacity of frontline safety management personnel has been enhanced.

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Country Garden Occupational Safety Management In 2020, Country Garden conducted Office Safety Drills Country Garden HQ, Regional Offices, and Subsidiaries organize safety drills on a close to regular basis on emergency aid, fire fighting and disaster relief, etc.

Safety Culture In 2020, Country Garden launched the Escort Plan oriented towards the whole Group, 4,000 Dissemination inviting well-known scholars and senior managers to give lectures on safety manage- drills of various kinds ment. Each year, events like Safe Production Month and Safe Production Day are held, which effectively increase the capa- devoting to create a culture of safety. bility to respond to emergencies

Daily Safety Inspection Country Garden calls on certified staff to check safety hazards before work and workers also have the responsibility to identify dangers on site. We give them rewards or points which can be exchanged for daily necessities so as to encourage employees to take the initiative in identifying the hazards and avoiding the potential risks.

At the same time, Country Garden introduced a series of employee health protection measures, offering protections against COVID-19, annual health checkups as well as lectures on physical health and mental health. Thus, we provide full and thorough care for occupational health.

Employee Health Protection Measures In 2020, the coverage of health Protection against We apply vaccines for employees ahead of their overseas missions. We purchase checkups of employees of Country COVID-19 additional business travel insurance and accident insurance for expatriate employ- Garden was ees, effectively lowering their risk of getting COVID-19.

Annual Health Checkup Country Garden cooperates with suppliers to provide preferential health checkup 100% package for employees and their family members. Meanwhile, we provide 1V1 insurance consultation and individual tailor-made insurance programs to give overall protection for employees’ health.

Care for Employees’ Physi- We invite medical experts to address seminars themed on pressure management. cal and Mental Health We organize gym classes, sports competitions, and decompression classes to help employees balance their work and life. In addition, we organize epidemic prevention and health lectures to help employees cope with COVID-related risks in life. In 2020, Country Garden invited Prof. Liu Chunli, a member of Dr. Zhong Nanshan’s Team to give lectures online to teach us life measures in Winter to prevent the COVID-19.

Country Garden also attaches importance to the occupational safety of the contractors’ employees. In the Project Con- struction Contract, Country Garden makes clear in details the safety and health management measures for contractors and specifies requirements for contractors with regard to the implementation of laws and regulations in production safety, the investment in safe production, the deployment of safety personnel, the safety technology management, regular risk evaluation as safety training. The Group supervises the implementation of occupational safety protection, sets up multiple goals of controlling the safety incidents, and makes clear contractors’ responsibilities in ensuring occupational health and safety.

074 Country Garden Holdings Company Limited

LISTENING TO THE EMPLOYEES TALENT DEVELOPMENT AS

Employees are the most valued treasures of Country Garden, so we actively A PRIORITY listen to their voices to know what they are concerned about, which is one of the working priorities of the Group. We have set up multiple channels and built an internal voicing platform called “Crazy & Cool Inputs” to hear the problems An echelon of talents is the core driving power of the sustainable development that our employees face in life, culture, and career development and help them of Country Garden and the development foundation of all the business devel- address them. We aim to become a satisfactory employer for our employees. opment of the Group. Country Garden gives top priority to talent team building. By constantly investing a lot into the creation of employee cultivation platform, In order to promote communication between employees and management, setting by employ assessment system fitting the corporate' development and Country Garden regards the bilateral exchanges of ideas as a good opportunity expanding talent growth space inside the Group, Country Garden serves as the to promote the development of the Group and strengthen mutual understand- fertile soil for the sturdy growth of talents. ing. Therefore, Country Garden continues to organize face-to-face meetings with executives; employees can break the hierarchy and talk equally and freely with them in a relaxing atmosphere about the questions they care most about.

Case Study ｜ 2020 “Meet the CEO” Event ENHANCED TRAINING FOR EMPLOYEES

Country Garden values the internal growth of talents. According to different Mr. MO Bin, the President of Country Garden led a senior team to sectors of the Group and the talent development needs for various phases, the launch face-to-face meetings with representatives of employees. Group creates a all-round talent supply chain with full coverage to ensure that Through live broadcasting, they had exchanges with all the employees, every employee of Country Garden can access the abundant training resources encouraging them to make efforts in self-improvement and value cre- of the Group. ation. This face-to-face event covered all the employees of the Group globally, numbering 20,000 with participating comments as high as 3,000. HORIZONTAL EXTENSION: To meet the demands of various employees, Coun- try Garden establishes a training system at four levels--leadership school, professional departments, online school, and open lectures.

VERTICAL GROWTH: The Group designs multiple training plans, namely fledgling plan, flying plan, leading planning, nirvana plan, and training class for senior leadership. From employees at the grassroots to senior leaders, all people can find the training plan suitable for their development phase. Through the classified and grading cultivation, the Group plans to gradually turn the business back- bones into excellent professional managers.

Picture taken at the 2020 Meet the CEO event

075 2020 Sustainability Report

TIMELY SUPPLY OF HUMAN RESOURCES- FROM REAL ESTATE TO NEW BUSINESS UNITS

GROUP STRATEGY / CHANNELING THROUGH REQUIREMENTS BY THE MANAGEMENT/REGULAR TRAINING SESSIONS Culture Corporate

IMPLEMENTATION OF THE “FIVE-STEP CAREER DEVELOPMENT LOOP FOR EVERYONE” ON THE GROUND Promotion

LAYERED LEADERSHIP SKILLS MANAGERIAL EXPERTISE PROFESSIONAL ONLINE OPEN ACADEMY Development TRAINING EMPOWERMENT TRAINING FORUM Talent Measures for Investment Management Capability Team Building Project Nirvana Department Enhancement Programs Leadership Training Camp Marketing Department Project Lingxiang Operation Management Career Coach Mechanism and management empowerment Other Professional I LOVE Project Zhanyi Departments LEARNING Cultural Cultural Ad hoc Transfer Phoenix Identity Lecturer Forum Project Xinyu Qualification Vertical Training Evaluation Challenge Missions

Programs E-learning

Strategic Strategic Training Camp Talent Horizontal Rotation Future Leaders Soft Landing of freshly Project Coaching Recruited Managers Technique Rotating positions Project Super within 3 offices of Graduate Training Camp New Employee Giant Leap Training Camp

HR MATCH-UP SYSTEM ｜ TALENT POOL CHECKING SYSTEM KEY STAFF PROFILE

10 KEY QUALITIES & LEADERSHIP STYLE & EQ & CHARACTER TYPE & CAREER ANCHOR(ONLINE EVALUATION SYSTEM)

Total online Total number of employees Total number of lecturers courses 8,654 studying online 2,370,000 for certification 2,020 The highest number of employees Total certification Total number of career studying online at the same time courses 2,485 15,000 grid development 6,698

076 Country Garden Holdings Company Limited

In 2020, centering on organizational empowerment, employees' training on major posts, management training, and normalized training, Country Garden continued to introduce sound resources both internally and externally to provide an all- round talent development and training platform so as to boost the efficient growth of employees.

ORGANIZATIONAL RESOURCE EMPOWERMENT BUILDING

Develop serious products aiming at IN 2020, "organizational empowerment to instill COUNTRY CULTURE fresh blood" to promote talents' growth by GARDEN INTEGRATION WORKED ON equipping them with skills.

TALENT CULTIVATION

Case Study｜Everyone Is the Teacher. Everyone Is the TTT CERTIFICATION Student. -- Engine Project All-round promotion for in-house tutors on their course Engine Project is the "engine" development capacity and teaching capability for the cultivation of talents for Country Garden. It aims at enhancing the course development capacity as well as the teaching techniques for the internal lecturers, build- CERTIFICATION OF CAPACITY EVALUATION ing a stable team of in-house More accurate evaluation of key talents and exploration of lecturers with high quality the potential the talents who can serve for a long time. It plays a boosting role in the competition and improvement and has accumulated nearly a thousand courses. In 2020, the Engine Project of Country Garden developed 72 new courses, introduced 222 new TTT certification has empowered units lecturers, and saw 82 em- 95 ployees getting the promotion in terms of the ranks. and 1,336 tutors For the Certification of Capacity Evaluation, in 2020, we have selected Course certification in the “Engine Project”was kicked off

116 trainees

In addition, Country Garden takes the initiative in launching certification for with of coverage in-house tutors, introducing TTT certification and the certification of capacity 100% evaluation. Basic training skills are enhanced while the value of the course itself is the real focus. 077 2020 Sustainability Report

SUCCESSION PLANNING Case study ｜Project Super Graduates Country Garden never ignores the cultivation of talents for key posts to support the Group's development and thus supply unstoppingly talents to the Group. We now have a leadership program including the signature Pilot Project and two strategic talent development projects, the Future Leader and Super Fu- ture Force. Recruits from the Project Super Graduates will have a personal men- tor and will rotate positions within the company to receive comprehensive training based on the “721” principle. By the end of 2020, the Case study ｜Future Leaders Project project has recruited over 6,000 employees. 21 of them have become presidents of regional offices and 90% of them have become mid management of the company.

With high standards and tailored career plan, the Future Leader Project is designed to attract top talents and develop them into future leaders in the industry.

By the end of 2020, 67.7% of the Recruits from Future Leaders Members of the Future Project have assumed posts of Leaders Project deputy director level and above. 38 of them are currently serving as group VP or presidents of re- Project Super Graduates Training Camp gional offices and subsidiaries.

MANAGEMENT TRAINING Adhering to the principle that "excellent tutors training excellent talents", Country Garden invites its own senior leaders assisted by outside experts to be the men- tors of the management team, creating training programs like coaching by senior management, senior management leadership, and golf drills so as to propel the rapid growth of management team by using case study and with words and deeds to tap employees' inner potential and their wishes to change.

Case Study ｜Introduction of Series Training Programs Called “Senior Leadership”, Creating High-Quality Leadership Team with Words and Deeds

COACHING BY SENIOR MANAGE- SENIOR MANAGEMENT LEAD- MENT ERSHIP COURSE The Program of Coaching by Senior Senior Management Leadership Management is chaired by President Course focuses on the case study. MO Bin. By "telling them the truth, Through the combination of on- showing them the ways and letting line and offline teaching, trainees' them do themselves", it aims to culti- comprehensive competitiveness vate management team of the Group. is gradually heightened in the President Mo Bin as the Head By the end of 2020, 25 coaches and 60 business practice, exchanges, Coach in “Coach for Senior trainees have established the relation- The first Coach for Senior Management inspiration, and enabling. Management”Program ship of "coaching & practicing". Match-up Camp

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NORMALIZED TRAINING In 2020, Country Garden arranged half a day of normalized training every Fri- day, summarizing experiences and lessons learned from the failure. President MO Bin led senior managers and regional presidents to take part in the whole process. Great cases of the Group are pooled together. Training are launched Country Garden launched times normalized training based on the knowledge system and exercises are assigned. 104 regional presidents are connected to the communication. 31 developed quality courses with 233 , people getting trained 62 000

Homework given by President Mo Online courses for Bin, one-on-one dialogue regular training

INSPIRING EMPLOYEES TO GROW

By sticking to the principle of "being fair, just, and transparent", Country Gar- Communication, den launched the assessment of employees' Performance. We set up a talent feedback and pool checking system and digitized management system covering all employees. improvement Through scientific talent competition and evaluation system, the Group taps into the potential of employees, encouraging them to grow fast and making sure that their hard work is remunerated fairly. ADVANCED STAGE CLOSED-LOOP EVALUATION & ENCOURAGEMENT SYSTEM Reasonable Country Garden formulated a closed-loop evaluation & encouragement system evaluation and which is a phased system consisting of target management, performance assess- guidance ment, performance analysis, and feedback to facilitate the growth of employees.

MID STAGE PERFORMANCE Improve the APPRAISAL AND completion of KPI INCENTIVE FEEDBACK

CLOSED-LOOP EARLY EVALUATION & STAGE ENCOURAGEMENT SYSTEM OF COUNTRY GARDEN 079 2020 Sustainability Report

TALENT POOL CHECKING SYSTEM Country Garden has optimized our talent pool checking system, compiled guidebooks for talent check, set up an online talent pool checking system, and carried out interviews with talents. Based on all these, the Group helped employees and teams to clarify the current situation and make plans to achieve the development goal of the echelon.

TARGETS AND PRINCIPLES APPLIED FOR TALENT POOL CHECKING

Special attention paid to candidates ticking box 7,8 and9

Personal KPI PERFORMANCE

Retaining Empowerment Empowerment Performance position and resources and resources contribution and keep support support motivating Personal key tasks Advance Empowerment Retaining and higher and resources position performance support target Capability evaluation Higher Capability Special Special Performance evaluation attention attention target or internal Professional transfer Capacity Flexible human resources POTENTIAL management

IN 2020, THROUGH THE ONLINE TALENT POOL CHECKING SYSTEM, VARIOUS DEPARTMENTS OF COUNTRY GARDEN

key posts checking with regard to key experience, Launched 779 checking activities Fulfilled 6,000 capability & quality, and work performance, etc.

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DIGITIZED TALENT MANAGEMENT SYSTEM Country Garden constituted a digitalized talent management system, setting up "filing system for key talents". This effectively improved digitalized management for key talents and gave a hand to talent growth and development.

DIGITIZED TALENT MANAGEMENT SYSTEM

INFORMATION KEY TALENT PROFILES HR DECISION KEY HR Key talent profiles ACCESS MAKING SCENARIOS BASIC PERSONAL INFORMA- BASIC PERSONAL INFORMA- TION TALENT TION eHR TALENT POOL Age, education background, posi- INFORMATION Age, education background, CHECKING position, job level PERFORMANCEtion, job level INFORMA- Talent Data TION (FLEXIBLE ALLOCATION) EHR information： PERFORMANCE INFORMA- COMPETITION FOR Event data etc TION (FLEXIBLE ALLOCA- Key performance corresponding BUSINESS VACANCY TION) RESUMEto the position Key performance corre- DATA sponding to the position Previous positions and career trajectory, key performance in JOINT REVIEW PERSONALrecent 3 years PERFORMANCE MASTER RESUME DATABASE Previous positions and career Performance records over the trajectory, key performance in years、Honors and punishments recent 3 years APTITUDE SCAN record Business Data PERSONAL PERFORMANCE Financial operation Performance records over Marketing the years (including feedback LEADERSHIP APTITUDE EVALUATION from line manager) Honors 、 EVALUATION (ACCORDING TO THE POSI- and punishments record EVENT TION) APTITUDE EVALUATION (AC- DATA CORDING TO THE POSITION) Professional capacity, predis- Professional capacity, predis- positions, characters positions, characters COMPREHENSIVE EVALUA- COMPREHENSIVE EVALUA- TION TION INFORMATION FILLING Comprehensive evaluation by Comprehensive evaluation by line manager or the manage- line manager or the management ment

A CLEAR CAREER LADDER FOR EMPLOYEES

Country Garden establishes a training and incentive mechanism that is dem- In 2020, Country Garden proposed a concept of professional grid develop- ocratic, fair, just , transparent, and merit-based to give full play to employees' ment, advocating cross-field development for outstanding talents in the talent, popularizes competition culture and selects talents of operation and Group. Through a smooth career path of all-round flow of human resources, management through regular open recruitment. Therefore, employees' talent we presented "New Path Project", "Talents' Roadshow" and "Sky Fine Talk" can be fully tapped and employees can access full opportunities and a good to speed up the matching of the business and information flow of talents. "In- platform for growth. Meanwhile, according to the need of post-development, ternal circulation" of outstanding talents was achieved and the talent supply we publicize recruitment notice to provide diversified development chances for chain was upgraded to Country Garden HR ecosystem. excellent people and encourage the benign competition between talents.

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Case Study ｜Country Garden's Career Grid Development

In order to encourage the multidimensional cross-field and cross-major development of employees and support employees to explore more possibilities, Country Garden paved the way for an all-round HR flow channel to promote the sharing of training resources and talent echelon for new businesses and the major business of real estate so as to realize the "internal circulation" of outstanding talents.

COUNTRY GARDEN EMPLOYEE ECO-SYSTEM

BUSINESS ALIGNMENT INFORMATION FLOW Bangsheng Creative Design

Tengyue Architecture

EMPLOYEE ROTATION Boyi Design Academy

"PROJECT NEW JOURNEY"+TALENTS' ROADSHOW+ REAL ESTATE Zhumei Modern Interior MANAGEMENT EMPOWERMENT + "SKY FINE TALK" DEVELOPMENT Zhuzhi Bathroom Chengjia Home Decor

Tengan Machinery Engineering Talents Hongye Pipe and Pile

Country Garden Services Operation and Operation and Marketing Anhetai Healthcare BRIGHT Marketing DREAMS Fengyue Hotel Operation and ROBOTICS Marketing Shunyin Landscaping

Bojiatuo Construction QIANXI You Bi Sheng Bochi Construction Equipment ROBOTICS Bijia Shunchu MODERN Boyuan Robotics Equipment GROUP Biyouwei Catering AGRICULTURE Bosheng Climbing Frame GA Robotic Tech BI YOU Borun Industrial Service XUAN

In 2020, Country employees realized BGI Garden saw 6,698 career grid development Hainan Runda Agriculture among whom 48% were over the manager level Menless Farm

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CARE FOR EMPLOYEES

We care for the talents wholeheartedly and create a dynamic life in Country Garden. By offering warm and intimate support and shaping a caring corporate culture, we try to make the talents feel Country Garden's love for talents, strengthen their sense of belonging, and create a cohesive team of talents.

WORK-LIFE BALANCE

Country Garden encourages employees to balance their work and life and take active part in all the events good for physical and mental health both inside the company and outside the company. We establish an employee club and launch various employee activities. Through shaping a healthy, active, and upward life, we aim at promoting the cultural development of the Group so as to forge a more vibrant and more harmonious team of talents and achieve the comprehensive development of our talents.

Case study｜ Employee Club brought colorful life to the staff

Performance of the Fengchang Jazz Dance Club Group picture of the Fengchang Music Club "the Pantry Band"

The Basketball Club at the Headquarters organizes Masked party of the Fengchang Dating Club virtual and real-life 3v3 matches on a weekly basis

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online interest By the end of 2020, we have established 15 The whole Group has over 350 groups 40,000 HQ clubs step by step represented by Country Gar- social organizations online interest employees offline events den Running Club, Taiji Culture Association, etc. and over 400 groups with 2,500 launched

A HELPING HAND

Country Garden has always been paying attention to the vulnerable and encouraging employees to help each other and create a harmonious family as well as the backup force for employees.

Case Study｜ Country Garden Setting Up Aid Fund BUILDING CORPORATE CULTURE and Care Fund to Provide Strong Support for Employees The power of mission and culture is unlimited. Excellent corporate culture can instill unstoppable inner driving force and set up a sense of recognition and sense of belonging for employees. Country Garden actively constitutes a warm EMPLOYEE AID FUND corporate culture, values the spiritual cultivation of employees, encourages The Employee Aid Fund has received 14.76 million RMB since its estab- employees to foster good social conduct ad conveys the sense of worth of the lishment and 14.57 million RMB has been given to 743 employees and corporate to our employees. We take the initiative in organizing various cultural their immediate family members in need to tide over the difficulties. The events and holding appreciation events for supporting families of our employ- highest allowance given to each employee was 500,000 RMB with an av- ees so that the distance between the Group and the employees are bridged and erage allowance of 19,599 RMB. employees can feel the warmth of the Group.

EMPLOYEE CARE FUND The Employee Care Fund mainly focuses on three aspects, namely med- Case Study ｜Country Garden's Events for ical care, education, and housing needs. It covers 100,000 employees, alleviating the life pressure of employees and enhancing a sense of hap- Corporate Culture Cultivation piness for our employees. In 2020, Country Garden called on senior management and regional presidents to launch imparting and According to the Special Rules on the Labor Protection of Female Employees inheriting events of the corporate and Regulations of Guangdong Province on Population and Family Planning, culture. Through words and deeds, we upgraded regulations on employee management to include maternal leave leaders of the Group made them- and birth allowance. We adopted multiple measures in providing an attentive selves examples to take actions and and considerate working environment for female employees and assisted keep in mind the idea. By the end of them to balance better their life and work. 2020, Country Garden HQ has fin- President of regional office ished two courses of corporate cul- We set up wider parking spaces for pregnant employees at HQ to facilitate giving lecture on corporate ture oriented towards different re- their getting on/of cars. culture gions. At the same time, all regions We set up baby care rooms at HQ to provide space for pregnant and feeding of Country Garden have fulfilled employees to have a rest and take care of their babies. 100% of regional presidents giving We held health lectures for female employees, provided daily products for lectures on corporate culture. ladies, and offered special meals for female employees.

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SHARED HARMONY

COUNTRY GARDEN 10 GIVES BACK

Feature｜ Combating the 087 COVID-19 Contributing to Poverty Relief 090 Effective Contribution to Rural 095 Revitalization Charity and Social Services 097 Investing in the Community and 100 Its Social Impact

OVERVIEW

As we uphold the philosophy of “making the world a better place for having us in it”, Country Garden is committed to philanthropy and to honoring our social responsibilities. The company is now established as a responsible corporate citizen. We have set up the Guoqiang Foundation and is deeply engaged in our nation’s targeted poverty Relief effort via party development, industrial development, education, employment, health and revitalization of rural area, which constantly delivers hope of sustainable development to rural areas. We have made meaningful exploration in combining targeted poverty Relief with the revitalization of the rural area thus contributing to the nation’s mission of building more prosperous villages. Members of our volunteer association have been actively engaged in philanthropy and social service like environmental protection, elderly and child care, as well as disaster relief across China. Besides, as an advocate of healthy lifestyle, we have been playing an instrumental role in new 085 urbanization and continue to create value for the society. 2020 Sustainability Report

TOPICS DISCUSSED IN THIS CHAPTER

SUSTAINABLE DEVELOPMENT SDGs DISCUSSED IN TOPICS DISCUSSED IN THIS THIS CHAPTER CHAPTER Community development and social impact NO ZERO QUALITY REDUCED Policy response and public 1 POVERTY 2 HUNGER 4 EDUCATION 10 INEQUALITIES engagement Charity and social service

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FEATURE ｜COMBATING THE COVID-19

Since the COVID-19 outbreak in 2020, Country Garden and Guoqiang Founda- tion have insisted on the principle of "precision-based support". Support in the forms of financial assistance and supplies were given to places mired by outbreaks of the disease. By combining the company’s strength with COVID-19 relief effort, Country Garden made some meaningful exploration into the fight agaist COVID-19. On January 24th, the Eve of Spring Festival, Country Garden made a emergency donation of 100 million yuan through the Guoqiang Foun- dation to set up phase I of COVID-19 Relief Fund. On February 13th, another 100 million yuan was donated for procurement of medical supplies for prevention and care for front-line medical workers and their families. In the mean time, close to 200,000 employees were mobilized to contribute to the fight against the disease while leveraging the company’s resourcefulness across the industry chain.

SETTING UP COVID-19 RELIEF FUND Medical supplies for COVID-19 prevention and control were loaded on the chartered flight destined for Wuhan CARE FOR FRONT-LINE MEDICAL WORKERS AND THEIR FAMILIES Country Garden, through Guoqiang Foundation, has donated 54.6 million yuan to set up the "Guoqiang Special Fund of Care for Medical Staff in Pre- vention and Control of COVID-19" and "COVID-19 Prevention and Control Vol- unteer Care Fund" to support health workers in the fight against COVID-19 as well as their close relatives who had difficulties in life or made significant contribution in the fight against the epidemic.Allowance and supplies were provided for front-line volunteers. Special care was given to social workers involved in the prevention and control effort. We also sent 1,600 "Care Pack- ages" to medical squads sent from Guangdong to Hubei on International Women's Day.

Country garden group also provided free recuperation places at our own hotels for more than 1,300 members of the medical squad returning to Guang- dong from Hubei with the best products and services, making sure that medical staff supporting the front-line could feel the warmth of home. Remote ultrasonic diagnosis systems to be shipped to Thunder God Mountain Hospital as donations

EMERGENCY PROCUREMENT OF MEDICAL SUPPLIES TO SUPPORT THE FRONT-LINE

EMERGENCY PROCUREMENT OF MEDICAL SUPPLIES FOR THE EPICENTER OF HUBEI’S OUTBREAK Country garden group and Guoqiang public welfare foundation actively mobilized all kinds of resources to purchase medical masks, protective clothing, goggles, medical equipment and other medical materials urgently needed for epidemic prevention, with more than 123 million yuan, which were successively transported to the epidemic prevention front-lines in Hubei, Guangdong and other places for use. In addition, Country Garden Group purchased nearly 100,000 sets of protective clothing and other medical materials through Guoqiang public welfare Multiple hospitals in Hubei received foundation, which were directly transported to Wuhan, Hubei Province by special plane. the medical equipment

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A SPECIAL PROCUREMENT INITIATIVE CALLED ”ENSURING SUPPLY AND PREVENTING STAGNANT SALES” WAS LAUNCHED

During the outbreak, Country Garden and Guoqiang Foundation initiated efiting over 200,000 households. The supplies also went to 10 hospitals four rounds of special procurement action called ”ensuring supply and and 15 command centers in Wuhan and Suizhou to satisfy the needs of preventing stagnant sales”. We made purchases of over 1,800 tons of front-line staff and their families. The initiative also helped over 100,000 poverty relief agri-products from 48 counties in 18 provinces. The goods people from 50,067 impoverished households, which enriched our pover- were shipped to over 150 communities in 13 cities of Hubei province, ben- ty relief effort while combating the disease.

Ceremony of Delivery of Donated Agriproducts for Poverty Mitigation from Guangdong Province to Hubei Province

RESOURCES ACROSS THE INDUSTRY CHAIN WERE MOBILIZED TO SUPPORT THE FIGHT AGAINST THE COVID-19

In addition to funding support and donations of supplies, Country Garden and Province to help prepare warm food for front-line health workers in a contact Guoqiang Foundation actively explored methods to fully leverage the strength free manner. of the group across the industry chain to support the front line of the battle against COVID-19. In June 2021, Qianxi Group deployed a team of 17 people and delivery robots from Shunde to support Liwan Guangzhou. 13 robots were deployed in quara- In Feburary 2020, Country Garden donated two batches of 4 indigenously de- tined communities providing last "100 meter" delivery-to-the-doorstep service veloped container clay pot rice robots and ingredients to the epicenter of Hubei for about 1,000 quarantined households in 13 communities.

Health worker enjoying a hot meal prepared by robot The "Broadbean" Delivery Robot is sent to support Guangzhou 088 Country Garden Holdings Company Limited

The healthcare business department dispatched medical staff to participate in the medical squad sent to Hubei to assist local medical institutions in epidemic prevention and treatment; At the same time, free online diagnosis were offered to residences in the epicenter of the outbreak. Country Gar- den’s property owners and employees were entitled to timely diagnosis and treatment at home.

Bright Scholar Group offered preferential admission packages for children of front-line health workers studying in designated schools, which include partial wavier of tuition fees and education fees. Up to now, 14 Country Gar- den schools have been announced as "designated schools for supporting the children of front-line health workers in the fight against COVID-19".

Volunteers carrying prevention and control supplies SETTING UP COVID-19 RELIEF FUND： FULL ENGAGEMENT OF THE COMPANY: Innovate services were provided to protect the health and safety of commu- A COVID-19 nities. Hospitals are the front-line of the battle, whereas our projects are Relief Fund of 200 home bases. Keeping the home base safe is the best support for the front- , million RMB was established 1317 line. In our delivered projects, Country Garden’s property management volunteer groups of party members teams were readily available 24/7, leveraging modern technologies to make purchases on behalf of owners and to provide comprehensive disinfection ZERO CASE OF CONTRACTION BY service at communities, safeguarding the health of 2.3 million owners. In GROUP GATHERING WAS REPORTED: 30,000 party members terms of prevention and control, strict access control was implemented in We had zero case of contraction by the communities. Comprehensive disinfection was carried out on a daily ba- group gathering reported among the sis. Groceries were purchased and delivered to home owners in quarantine. 145 190,000 organizations affiliated with the group employees because of restoration of work and production. 81,114 personnel involved 61,128 directly Zero out of 4.5 million involved 19,986 indirectly involved home owners contracted the disease in the public area of our projects 089 2020 Sustainability Report

CONTRIBUTING TO POVERTY RELIEF

Country Garden adopts a “1+2+3+4+5” poverty relief working mechanism. By the end of 2020, we have accumulatively donated 8.7 billion Yuan to our country and our poverty relief programs encompass 57 counties from 16 provinces. In total, our effort lifted 490,000 people out of poverty with an average income increase of 1,497 Yuan.

ONE MISSION: TWO ELEMENTS COMBINED: A meaningful compliment to the party and the government’s poverty relief work Our company’s own strength and local situations

THREE-TIERS IMPLEMENTATION FRAMEWORK: Command center, local poverty relief project leads(200 people), stakeholders, local village chiefs, and business KOLs

4+X POVERTY RELIEF MODEL: Party development, industrial development, education and employment are the four main approaches with local and individual variables taken into consideration to achieve targeted relief effort

REVITALIZATION IN FIVE ASPECTS: The 1+5+N rural revitalization model is introduced with party development leading the way. Industry, talents, ecosystem, culture, and organization are the five main areas of focus. Multiple categories of projects, including industrial development models that can generate lasting value as well as utility projects are being implemented as an exploration into self-sustaining, long-term, and scalable rural revitalization model.

Case study ｜Mr. Yeung Kwok Keung, founder of Country Garden, was awarded the title of “National Pioneer

in the Fight Against Poverty ”

As the very person who paved the way for Country Garden, Mr. Yeung Kwok Keung has elevated poverty relief to the top priority level within the group. Country Garden’s helping hand reaches out to 57 counties in 16 provinces across China with targeted measures on party development, education, industrial development, and employment being implemented, which is a meaningful exploration into a self-sustaining, long-term, and scalable poverty relief model. On February 25th, the National Conference to Review the Fight Against Poverty and Commend Individuals and Groups Involved was held at the Great Hall of the People. Due to his outstanding contribution to Charity and poverty relief, particularly poverty relief through education, Mr. Yeung Kwok Keung was awarded the title of “National Pioneer in the Fight Against Poverty” Mr. Yeung Kwok Keung, founder of Country Garden, attending a poverty relief event at a designated site in Sichuan

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POVERTY RELIEF THROUGH PARTY POVERTY RELIEF THROUGH INDUSTRIAL DEVELOPMENT DEVELOPMENT

Mindful of the leading role that party development plays in poverty relief work, Poverty relief through industrial development is the most direct and effective Country Garden constantly improves on our working mechanism to make sure method, which also helps the poor regions to sustain themselves in the long that it aligns with the social and economic reality in the lesser developed re- term by creating local jobs. Country Garden has been actively exploring a mod- gion. We adopted the “individualized relief plan for every household” approach el that is driven primarily by consumption, turning organic resources, exclusive to realize targeted poverty relief. culture resources, and specialty agriproducts into marketable commercial goods, lifting impoverished households out of poverty.

By the end of 2020, we village party secretaries and By the end of 2020, returning young entrepre- have trained over cadres and recruited 35,000 we have supported 10,000 neurs in villages which indirectly in- people living below “Senior Village Chiefs” based on merits. 140 creased the income of 40,000 the poverty line. Our effort indi- people living below We have accumulatively million Yuan in agriproducts from rectly covered the poverty line 66,000 delivered 190 poverty relief programs we are deeply households which are in impoverished engaged in helping destitute situations 1,400 which increased the income of 118,000 households.

｜ Case study ｜establishing interest combining and sharing Case study supporting the walnut industry at mechanism to develop the plantlet industry Ningshan county Country Garden takes the initiative to Through consultation with village nursery stock in 12 counties and have respond to the nation’s calling to support collectives and farmers, a long- supported over 18,000 rural house- impoverished counties. In 2020, we start- term cooperative mechanism is holds by renting lands, providing em- ed to support the walnut industry in Ning- established to share benefits and ployment and equity investment. Final shan county as part of the “Party unit+X risks. The program is focused on products continue to be shipped out of households” program. A earmarked fund developing nursery stock indus- 10 farms in Xingguo, Tiandong, Ping- for party development fund of two million try as support for counties. The jiang, Lantian,Xinhe, Yingde, Yucheng, Yuan was set up to support local indus- operating model allows farmers Dongxiang, Luanping and Shucheng, trial development via the Party unit+local to borrow from the program to with a total output of 160 million Yuan. industrial association+coops+households invest in nursery stock cultiva- model. We donated walnut processing as- tion and repay with the money sembly line and helped to build dustless recouped from sales. Once the factories to improve walnut kernel quality. lending is repaid, the farmers We also assisted the local community in can borrow again. With the coop- building the brand of Ningshan walnut eration among the company, the through packaging and marketing. Until coops and the households, inten- now, Ningshan walnuts that worth two sified nursery stock plantation of and half a million Yuan were sold with the scale and household plantations help of Country Garden. can be developed to increase Workers irrigating the plants at the income of local people. Until Tiandong Nursery Stock Plantation now, we have planted 2,000 mu’s Base in Guangxi Province Packaging of Ningshan Walnuts

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Dongxiang county of Gansu province, one of our key poverty relief targets, has Case study ｜Country Garden assisting Dongxiang in gradually established three pillar industries that are based on local treasures: the sheep, the potatoes, and the embroideries. commercializing local treasures: the sheep, the potatoes, and the embroideries.

Through the With support from Country Gar- DONGXIANG SHEEP-“CASH COW” den, Dongxiang established a LIVING ON THE EDGE OF THE CLIFF. 4+X standardized sheep factory and an Country Garden and Dongxiang Farm- model, Country Garden has entire industrial chain that’s based ing Coop jointly established the “Coun- implemented on the sheep. try Garden Poverty Relief by Industrial Over 45,000 Development Dongxiang Sheep Co- 25 operative Demonstration Breeding sheep were sold, which translated relief projects in Dongxiang, Base” to create an entire industrial into covering chain for the sheep. The group assists Dongxiang in the selection of breeding 229 40 million Yuan in sales sheep, standardization, natural feed Dongxiang Sheep Cooperative villages and lifting close to formula, and sheep shed upgrading, Demonstration Breeding Base ensuring lamb of premium quality. 6,000 households out of poverty THE “BLOSSOMING” POTATOES Since 2018, Country Garden has spent 3.2 million Yuan to provide seedlings Country Garden provided seedlings With an accumulative and farming technique training for over and farming technique training for investment of 6,000 impoverished households from over 50 poor villages in 14 counties, selling over 6,600 tons of Dongxiang potatoes. 24 million Yuan 6,000 we managed to sell impoverished households, which contributed to the sales of over 110,000 Dongxiang embroidery products 6,600 with a total worth of over tons of Dongxiang potatoes Country Garden helping Dongxiang In 2020, a potato planting 2.2 million Yuan Female craftsman walking the runway with its potato planting demonstration base of 700 at China International Fashion Week mu was established with a yield of over 5,500 PROMOTING THE INTANGIBLE HERITAGE OF DONGXIANG: kg per mu, comparing to EMBROIDERIES up by 50% previous data Embroidery in Dongxiang carries over a thousand years of history and is accredit- ed by the prefecture as intangible cultural heritage. Country Garden’s relief effort We continue to promote machine plant- focused on two aspects: product quality and craftsmanship. In 2020, we incubat- ing of potatoes in 2021 and has chosen ed a local embroidery brand called Saiang Flower, which means beautiful flower in Chinese. The products and female craftsmen were introduced at the fashion 9 villages from weeks in Beijing and Shanghai. In the meantime, we organized 21 embroidery training sessions to help 1,000 strong female craftsmen from 20 towns with their 6 counties to pilot the program. skills. Till now, Country Garden and Guoqiang Foundation’s procurement orders have contributed to the sales of 110,000 items that worth over 2.2 million Yuan. The once hidden local treasure is now upgraded to a thriving industry.

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POVERTY RELIEF THROUGH EDUCATION Case study ｜“Wish 100” paving the way for students from humble backgrounds The level of education is key to poverty relief work. To ensure good education Country Garden has set up the “Wish 100-Fulfilling The College Dream” for children from impoverished regions is of top priority to the relief effort. It fund to achieve poverty relief through education, giving students with is also essential for poor families to cut off inherited poverty. Country Garden economic difficulty the opportunity to get a good education. In the 2020 has always been committed to poverty relief through education and has been college entrance exam, high school graduate Wu Xiong, with the help active in making generous donations and finding tutors to ensure quality and of the “Wish 100-Fulfilling The College Dream” fund, achieved a great equitable education, thus stopping poverty to passed down to the next genera- score of 670 and was successfully admitted by Peking University. tion. There were over 700 participants to the 2020’s college entrance exams, who, like Wu Xiong, benefited from our education-based poverty relief programs. With a firm belief of “knowledge has the power to change By the end of 2020 destiny”, most of the student beneficiaries gained great results through 2.024 hard work. billion Yuan was invested to benefit 103,300 students with financial difficulty. We have launched the “Wish 100” initiative three years in a row, with over 255,000 donors from “Wish 100-Fulfilling The College Dream” fund awarding ceremony in Pingjiang 300 strong charitable teams and organizations. 38.8004 Case study ｜Warm Winter Action in Liangshan Prefecture million Yuan was donated and helped Country Garden and Guoqiang Foundation united our partners, staff, 14,338 owners, and activists to advocate for a minimalism lifestyle and launched the Warm Winter Action to gather donations that used to be financially challenged students from shelved by the donors. In 2020, the initiative recycled over 4,000 kg’s old clothes which were exchanged for 500 care packages and 2,500 57 counties in books to be sent to over 1,000 impoverished and stay-at-home children, warming their hearts in cold winter. 16 provinces

Warm Winter Action in Liangshan Prefecture 093 2020 Sustainability Report

POVERTY RELIEF THROUGH EMPLOYMENT POVERTY RELIEF THROUGH HEALTHY LIFESTYLES One bread earner could save the entire family from poverty. Job creation is the most direct and effective way of reducing poverty. In order to achieve more fo- Sickness is the most prominent challenge among the impoverished population cused poverty relief, improved skills, and more job opportunities, Country Gar- in rural areas. Poverty relief through the promotion of health is an important den has organized various activities, including employment training and hiring and challenging aspect in the poverty relief effort. With full consideration of campaigns to offer free training and employment opportunities. local features, Country Garden is deeply involved in promoting health among poor populations. The group organized free pop-up clinics in villages and training sessions for primary caregivers to improve the local healthcare level. By the end of 2020, we have trained 96,283 people and helped 55,257 people land their jobs. The HR division teamed up with all the subsidiaries and external partners and In 2020, Country Garden donated provided over 10,000 pieces of recruitment information for people from impoverished families. 100 million Yuan to support the nation’s “Poverty Relief through Bright Vision-Vision Re- gaining for Cataract Patients” program, offering free treatment to cata- Case study ｜Cantonese Dish Chef Training ract patients living below the poverty line Course-helping rural residence with employment and entrepreneurship Case study ｜Internet+Health Poverty Relief Project The Cantonese Dish Chef project is spearheaded by Guangdong Province to promote employment and income increase through vocational training and On November 6th 2020, in col- skills acquisition. With the contribution from Country Garden, the Canton- laboration with Weiyuan County ese Dish Chef Training Course was kicked off in Gushi Town in June 2020. Integrated Chinese and Western Sixty-three trainees were enrolled and 58 of them passed the qualification Hospital and Shangwan Town test in July after a month’s training. Forty-two trainees were successfully Health Clinic, Country Garden’s recommended to employers. Digital Mobile Hospital under the “Internet+ Health Poverty Relief” program brought physical checks to campus. Nine health workers and the Digital Mobile Hospital went to the Changjiaping Village Students lining up for Primary school to conduct phys- physical checks ical checks for 10 teachers, 82 students, and 23 parents covering 63 impoverished households as well as raising health awareness among students and parents in the region.

Trainees learning Cantonese cooking and baking skills from each other

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Case study ｜Rural revitalization in Lianzhang Building Beautiful Villages villages of YIngde city With local feature fully accounted for, we promote the development of rural revitalization complexes that are equipped with local style BNBs, reception Back in October 2017, the poverty relief team desks and agritainments to change the mess appearance of villages. sent by Country Garden and Guoqiang Foun- dation had started the rural revitalization work in accordance with the 4+x poverty Country Garden’s “Building Beautiful Vil- Country Garden’s “Building Beauti- relief model. As the country is approaching lages Initiative” has been rolled out in ful Villages Initiative” has entered the finishing line of establishing an all-round Xiaokang society, Lianzhang village has been Lianzhang Rural Revitaliza- tion Academy villages of 58 villages from 13 actively developing its industries with party 47 28 development taking the lead. In 2020, the vil- counties, including Lianzhang village counties. By the end of November lage realized an annual per capita disposable of Yingde city in Guangdong. 2020, the initiative benefited income of 21,414.3 Yuan. The local economy has grown from 2,000 Yuan in 2016 to 1.5 16,906 people from million Yuan. A once destitute village was Profiles of 18,335 transformed into a model of prosperity to be followed. impoverished households were households in established, directly benefiting 5,635 48,587 120 villages. Profiles of households were estab- people and indirectly benefiting 736 lished, encompassing people EFFECTIVE CONTRIBUTION 124,534 from 1,800 people TO RURAL REVITALIZATION 27,019 households We have cumulatively implemented rural revitalization 118 projects, of which were about New Village 48 Development, benefiting

504 villages

Lianzhang Village Complex Construction

As we are approaching the end of the fight against poverty, Country Garden is actively engaged in the cause of Rural Revitalization. With the vision of having habitable, civilized, well-governed and prosperous villages with thriving indus- Phoenix Hotel in Nanqiang Village Yuju BNB as part of cultural tourism of tries and distinctive culture, our rural revitalization effort has been focusing on of Qionghai city in Hainan Province Bi County in Yingde city projects in the following five aspects: industrial development, human resources development, cultural development, eco-system and organization develop- 095 ment. We aim to lead the rural revitalization effort by example. 2020 Sustainability Report

Country Garden’s five-prone rural revitalization effort

Revitalization through in- Supporting the poor regions in developing industries of local feature; participation in whole industrial chain by combining with dustrial development: find- existing projects; supporting the development of business funded by returned entrepreneurs and local cooperatives; targeted ing new growth engines procurement scheme to drive up sales; establishing poverty relief workshop to promote employment; implementing projects such as green seedlings plantation, modern agriculture and other industrial projects.

Revitalization through hu- A poverty relief team was sent to be stationed in rural areas to participate in rural revitalization; Special attention is paid to train man resources develop- local talent and to build a platform for learning, exchange and further study for talents such as returning young entrepreneurs, ment: inspiring new vitality village branch party secretary, etc; we aim to help 10,000 secondary school graduates with financial difficulties to find jobs, sup- among villages port 10,000 returning entrepreneurs to take roots in rural areas, and support 10,000 impoverished students to complete their studies.

Revitalization through eco- We plan to reinvent the presence of villages and build better utilities and infrastructures as an effort to create beautiful and hab- system building: reinventing itable new countryside, thus giving rural citizens a clean and comfortable living environment. We aim to incorporate elements for a beautiful and refreshed like science, technology and culture into agriculture, and promote the development of green economy. outfit

Revitalization through orga- We plan to build "front-line poverty relief Party branches" by pairing with the village-level party organizations to support local nizational capacity building: communities; we are in search for a group of "old village chiefs" with prestige to provide guidance; We will unite and guide rural establishing a new gover- coops to support the development of new rural collective economic organizations. nance system

Revitalization through cul- We plan to organize cultural activities to enrich local lifestyles; we will dig deep with local historical heritages and develop local tural development:a re- B & B culture; we will support the cultural and creative products development to carry on the intangible legacy; tourism resourc- freshed air of civility es that include local specialties, ancient heritages, the old Red Army bases and scenic spots will be explored and consolidated into special tour packages.

Case study ｜consolidating the industrial chain to support rural revitalization

To contribute to the nation’s fight against poverty, Country Garden combines property management service with rural revitalization to improve on rural governance.

Known for its many ravines, Dongxiang county of Linxia Prefecture is called the “Ribs of the Earth”. In November 2020, Country Garden organized both the upstream and downstream of the industry chain as well as our corporate allies to participate in the urban service for Yaohe Economic belt in Dongxiang. We provide poverty management services for communities hosting relocated residents and explore solutions for renovation of shabby communities, road and pipeline building as well as industrial park development. We helped with the relocation of rural citizens in 77 impoverished villages thus contributing to rural revitalization.

Providing property management services for communities housing relocated residents from impoverished villages in Dongxiang

096 Country Garden Holdings Company Limited

CHARITY AND SOCIAL SERVICES GUOHUA MEMORIAL MIDDLE SCHOOL "I was once destitute. It was my country that gave me the grant to finish In 2002, Yeung Kwok Keung and his daughter Yang Huiyan donated high school. It was the reform and half of the family fortune which was calculated as 260 million yuan opening-up policy of the party and the at the time to fund the first fully charitable and tuition-free private nation that gave me the opportunity to high school in China. It was aimed at recruiting junior high school accomplish so much in my career. A graduates with excellent merits and poor economic conditions in drop of favor in need shall be returned China. All the expenses of the recruits, which include study,ac- by a fountain of gratitude. I will forever commodation, food, transportation and others will be covered be grateful. As my wealth comes from from high school to college graduation. The average cost for each the society, it’s my obligation to give student was more than 300,000 yuan. It was only until 2007 when back " the school was first covered by the media and known to the outside world. By 2020, 3,260 students have been accepted with extremely Graduates from Guohua Memorial —— Founder of Country Garden high overall college admission rate. Middle School

ZHONGMING UNDERGRADUATES GRANT PROGRAM On April 21st, 1997, Mr. Yeung Kwok Keung, with two million yuan’s net worth at the time, came to Yangcheng Evening Newspaper, and proposed to do- nate one million yuan anonymously every year to establish the "Zhongming Undergraduates Grant Program", which was named after his mother. The program supported students with great merits and poor economic conditions from 20 colleges and universities in Guangdong Province. The act was kept as a secret for 10 years until it was revealed by the media in 2007. By 2020, a total of 41 million yuan has been donated, with nearly 12,000 beneficiaries of the grants.

2020 Awarding Ceremony for Zhongming Undergraduates Grant

TEACHING ASSISTANTS WHO PASS ON THE KNOWLEDGE AND CARRY ON THE LEGACY OF LOVE

In 2008, Sangping middle school in Wenchuan resumed class in another place In 2013, 500 million yuan was donated to establish Guangdong Country Garden Vocational College In 2017, 100 million yuan was donated to establish the Huiyan Education Support Fund In 2018, 2.2 billion yuan was donated to Tsinghua University In 2019, 300 million yuan was donated to establish the Linxia Guoqiang Occupational Training School, which is tuition free for all students

097 2020 Sustainability Report GUOQIANG FOUNDATION Guoqiang Foundation is a non-public Foundation founded by Mr. YEUNG Kwok Keung, chairman of Country Garden Holdings Company Limited and Ms. Yang Huiyan, Co-chairman of Country Garden Holdings Company Limited in 2013. With the vision of "contributing to the realization of people's aspiration for a better life", it promotes social harmony and progress of the society in areas such as education, cultural development, rural revitalization and community development.

Case study ｜ Supporting sustainable development in rural areas by leveraging vocational training Linxia Guoqiang Occupational Training School is located at Linxia Prefecture of Gansu Province and is a charitable privately-owned vocational school with 300 million Yuan’s investment from Guoqiang Foun- dation. The tuition is waived for student from impoverished family. The school can provide training for 2,000 students. The education model is based on the philosophy of combining industry with education and share education responsibility by companies and the school. All the majors have corresponding external internship bases to help students master the skills that would lead to employment. The aim is to achieve the target of “one employment lifting the family out of poverty” and to cultivate talent to contribute to the revitalization of rural areas. Property management department of Until now, the school has recruited 575 students with 73 faculty members and 42 teachers. 30 teachers Linxia Guoqiang Occupational Training have experiences both as teaching staff and as employees in the company, accounting for 71.4% of the School total. They are now helping students in not only theoretic knowledge but also practical know-hows.

YEUNG BOARD OF SUPERVISOR KWOK KEUNG SUPERVISORS HONORARY SECRETARIAT CHAIRMAN DEPUTY BOARD CHAIRPERSON BOARD OF CHEN CHONG YANG HUIYAN DIRECTORS BOARD CHAIRPERSON/LEGAL REPRESENTATIVE BOARD MEMBER

Guohua Memorial Middle School ESTABLISHING Guangdong Country Garden Vocational School CHARITY SCHOOLS Linxia Guoqiang Vocational School

Zhongming Grant-in-aid for University Students EDUCATION Huiyan Educational Fund CHARITY FUND Earmarked fund for education

GUOQIANG Revitalization through Revitalization through orga- FOUNDATION RURAL industrial development nizational capacity building REVITALIZATION Revitalization through human Revitalization through cul- resources development tural development Revitalization through ecosystem building

Guangdong Province Bixiang Agriculture Development Ltd. Guohua Tourism and Culture Holdings SUBSIDIARIES Guangdong Fenghuangdaojia Vocational Traning Ltd. Guangzhou Huizhong Micro Credit Company Guangdong Wan Mu Qi Agricultural Technology Company 098 Country Garden Holdings Company Limited

Case study ｜ Fenghuangdaojia Vocational Training, supporting the human development for rural revitalization

Fenghuangdaojia Vocational Training is affiliated with Guoqiang Foundation and its mission is to respond to the nation’s calling on rural revitalization and stabilizing employment. The company focuses on charitable causes and provide housekeeping training and housekeeping services. The company now has over 30 training bases jointly built with local governments in provinces like Guangdong, Guangxi, Yunnan, Guizhou and Si- chuan offering a wide range of courses covering housekeeping service, babysitting service maternal care and elderly care.

The company creates a feedback loop by combining training with employment, which not only helps with employment, but also grows the economy as well.

Fenghuangdaojia Housekeeping Service Academy organized Housekeeping Training in the South of Guangdong

VOLUNTEER SERVICE

The group’s volunteer association organized 3,052 volunteer service activities rural area. As of June 2021, 375 activities have been organized and more than throughout last year, involving more than 11,000 people and serving nearly 10,000 people benefited from the service. The project won the gold medal of the 420,000 people. More than 1,000 communities participated in a series of vol- 5th China Youth Volunteer Service Project Competition. untary service activities such as the "Warm Winter Action" and the "Green Guardian Program" which raised the awareness of environmental protection During the COVID-19 outbreak, Country Garden’s Volunteer Association was knowledge among the public. awarded the title of “Pioneer Youth Volunteer Organization in Combating the COVID-19 Pandemic” by the Central Committee of the Communist Youth League Project Bishan- Country Garden in Support of Targeted Poverty Relief and Rural and Chinese Young Volunteers Association for its service in prevention and con- Revitalization Volunteer Service Action" the project focuses on civilized practice trol, restoration of work and production as well as employee care. The award in the new era and aims to build a platform linking urban and rural areas with was only honor for volunteer service in China that has the official approval from the "1 + 2 + n" volunteer service model, thus energizing the volunteer service in the CPC Central Committee,

“Small Space, Great Horizon”- Library Building Project in Yingde, Country Garden Volunteers in Service: COVID-19 Prevention and Control Guangdong Province

099 2020 Sustainability Report

INVESTING IN THE HEALTH AND SPORTS

COMMUNITY AND ITS SOCIAL In order to convey the message of living a healthy life to more people, Country Garden has been actively involved in mass sports and is trying to marry sports IMPACT with our charity effort. We are calling upon more stakeholders to join our promotion campaign for public health and to feel the positive energy coming from doing sports and charity. With the conviction of our philosophy: Be good to people, be good to society, Country Garden is actively involved in building social housing and new urbanization. We also stay true to our mission as the advocate for healthy lifestyles and as a consistent contributor of value creation in society. We make homes Case study ｜Dream Runner--Recording your run and we make dreams. online, a new fashion in the post COVID era

The 2020 Dream Runner event for the first time experimented with the BUILDING SOCIAL HOUSING model of recording runs online as an innovation. The runners were able to simultaneously participate in charity while practicing a green lifestyle. From September 5 to October 18, 2020, a total of 31,191 runners from dif- As the national policies of promoting social housing development continue ferent cities across China participated in the event and raised money for to intensify, Country Garden, as the pioneer of China’s new urbanization, has the "100 Wishes" project, helping more than 6,400 students from poor been driving the development of social housing across China, living up to our families to realize their dreams. obligation and social value as a responsible developer for the people. We built social housing and rent-control housing for talents in cities like Shenzhen, addressing the residential needs of thousands of households. All of these are our organic drive to be engaged in new urbanization and to “be good to people, be good to society”.

In 2020, Country Garden devoted a lot of effort into the implementation of 4 residential projects with an expected area of 140 mu after completion, making our due contribution to addressing the residential needs of citizens. In the meantime, Country Garden paid special attention to the people’s livelihood and to building safe apartments for talents, solving the housing challenge for young people trying to make their way in big cities. We will press ahead with our developments and honor our social responsibilities by committing ourselves to building more social housing, thus improving the overall living environment.

In 2020, Country Garden’s social housing million sq.m in the The event site of “Dream Runner” developments added up to a total of 1 construction area

In 2020, Country Garden developed a number of talent housing programs with total area reaching 180,000 square meters

100 Country Garden Holdings Company Limited

OUTLOOK INTO 2021 2021 is going to be a year of special significance for China’s modernization road of sustainable development, Country Garden will proactively respond to drive. It is also the beginning year of the 14th Five Year Plan. Building upon our national objectives that include Carbon Peak before 2030 and Carbon Neu- past achievements and experiences, Country Garden will follow through the trality before 2060. Mindful of our responsibilities to society and to the envi- spirit of the Fifth Plenary Session of the 19th National Congress of the CPC to ronment, we will aim for quality and sustainable development that enables commit ourselves to quality green development. We will, with the resolution, Country Garden to withstand the test of time and succeed in the next centuries establish ourselves as a comprehensive high-tech company and will consis- to come. tently improve on our overall competitiveness. As we further embark on the

ECONOMIC RESPONSIBILITIES AND CORPORATE GOVERNANCE PRODUCTS AND SERVICES We will continue to optimize our corporate governance and operating efficiency Customer-centered philosophy will stay at the very core of our effort with our to achieve quality development of the company, thus enabling lasting success. relentless pursuit of quality and safety. We will keep innovating new technologies and upgrading our customer service to ensure safe, green, and thoughtful products and services.

GREEN DEVELOPMENT GROWING WITH OUR PARTNERS Existing measures like green building, green construction, green operation, We will enhance our effort in building sustainable supply chains and advocate and green office space will be kept in our operation. The concept of sustainable for open and transparent partnerships. Accountability mechanism will be development will be incorporated into the whole product life cycle and into introduced in supply chain management to contribute to a greener and better our daily operation. We will set us off with the design, target identification and industry. planning in regards to the Carbon Neutrality objective for a “greener” Country Garden in the future.

GROWTH AND SAFETY OF EMPLOYEES CORPORATE SOCIAL RESPONSIBILITIES We will keep optimizing our recruiting system to ensure the benefits, rights, We will further leverage our resourcefulness and experience in charity to im- and occupational safety of our employees. We also aim to create diversified plement rural revitalization and poverty relief on the ground. These will deep- career ladders for talents and build efficient teams within our firm. en the engagement of our company in philanthropy and social services with the aspiration of building a beautiful world with all.

101 2020 Sustainability Report

APPENDIX I: HONORS

HONOR GRANTING UNIT TIME INDUSTRY

2020 Most Honored Company in the All-Asia Executive Team No.1 Best CEO (Seller of Real Estate Industry) No.1 Best CFO (Seller of Real Estate Industry) No.1 Best Investor Relations Team Institutional Investor July, 2020 (Seller of Real Estate Industry) No.1 Best Investor Relations Project (Seller of Real Estate Industry) No.1 Best ESG (Seller of Real Estate Industry)

SAFETY

Unit of Extraordinary Contribution in the Pandemic Association of Construction Industry of February, 2021 Prevention and Control in Guangdong Province Guangdong Province

Gold Bull Award of Malaysia International Business Media Group September, 2020

SCIENCE AND TECHNOLOGY 科技 IF Award of Germany (Cleaning Robot) Organizational Committee of IF Award November, 2020

Red Star Award of China (Laser Line-Scanning Organizational Committee of Red Star Award March, 2020 3-Dimensional Sensors, etc.)

Guangdong Governor Cup Industrial Design Com- Guangdong Provincial People’s Government September, 2020 petition (7-Axis Mechanical Arm) ESG/ SOCIAL RESPONSIBILITY

No.1 Best ESG in the All-Asia Executive Team Institutional Investor January, 2020 (Seller of Real Estate Industry) PUBLIC WELFARE AND POVERTY MITIGATION

China Charity Award Ministry of Civil Affairs of PRC December, 2020

Leading Group for Poverty Relief and Rural National Poverty Fighter October, 2020 Development of the State Council

National Development and Reform Letter of Gratitude March, 2020

Commission of PRC Honorary Head of Guangdong Charity Federation Guangdong Charity Federation September, 2020

102 Country Garden Holdings Company Limited

HONOR GRANTING UNIT TIME

FIGHT AGAINST THE PANDEMIC

Title: “Excellent Private-Owned Enterprise in the All-China Federation of Industry and December, 2020 Fight against the Covid-19 Pandemic” Commerce

Title: “Member Enterprise with Extraordinary Contribution China Real Estate Chamber of Com- December, 2020 in the Fight against the Covid-19 Pandemic” merce

APPENDIX II: KPIS ON SUSTAINABLE DEVELOPMENT

LIST OF ENVIRONMENT-RELATED PERFORMANCE INDICATORS

ESG INDICATOR UNIT 2020 2019 2018

NOx emission Kg 1,809.55 11,902.71 35,306.16

A1.1 Emission SO2 emission Kg 14.61 29.96 39.95

Particulate Matters Kg 126.96 1,094.26 2,557.55

CO2 equivalent emission Scope 1 (5) Ton 17,879.12 23,638.20 29,656.07

CO2 equivalent emission Scope 2 (6) Ton 316,353.51 526,767.27 1,274,326.58 A1.2 Greenhouse Gas Emission and Intensity CO equivalent emission 2 Ton 334,232.62 550,405.47 1,303,982.65 Scope 1 and 2

Carbon dioxide emissions per Ton/million RMB 0.72 1.13 - million RMB of revenue

Waste cartridge Ton 30.13 95.96 673.42

Waste electric devices Ton 10.39 21.24 621.04 A1.3 Hazardous Waste(7)

Waste battery Ton 9.54 16.32 602.49 Recycled electric devices Ton 12.46 4.97 599.69

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LIST OF ENVIRONMENT-RELATED PERFORMANCE INDICATORS

ESG INDICATOR UNIT 2020 2019 2018

Other office waste Ton 2,497.17 3,414.08 - A1.4 Harmless Waste Kitchen waste Ton 3,558.62 7,967.99 7,619.84

Office paper consumption Ton 553.15 707.39 1,754.70

A2 Resource Consumption Methanol Ton 150.85 175.37 146.15

Coal Ton 153.49 20,482.30 573,616.01

Natural gas Cubic meter 9,210,813.70 7,623,598.15 7,936,576.24

Petrol Liter 899,774.59 1,609,176.50 2,390,038.55

Diesel Liter 8,153.74 688,912.95 -

LPG Ton 2,597.32 575.13 1,065.82

A2.1 Energy Consumption Electricity purchased kWh 368,592,154.42 498,702,187.78 478,731,810.68 and Intensity(9) Electricity purchased Gj 1,212,632.83 952,834.43 7,379,921.06 (for heating) (10)

Direct energy consumption Gj 487,654.30 376,308.65 12,459,515.10

Indirect energy consumption Gj 2,538,873.33 2,747,635.11 9,103,355.58

Total energy consumption (11) Gj 3,026,527.63 3,123,943.76 21,562,870.68

(12) Energy intensity Gj/million RMB 5.49 6.43 57.97

Water consumption Cubic meter 18,794,724.70 42,170,258.72 99,394,375.47 A2.2 Water Consumption and Intensity Cubic meter/ Water consumption intensity (13) 40.61 86.79 267.22 million RMB

A2.5 Packing Material Use Cardboard box consumption(14) TON 42.31 61.46 -

A3 Environment and natu- (15)

Solar power generation kWh 213,333.00 9,854,093.00 - ral resources

104

Country Garden Holdings Company Limited

DESCRIPTION OF ENVIRONMENT-RELATED KPIS IN 2020:

1 THE DATA COLLECTION SCOPE OF ENVIRONMENT-RELATED KPIS IN 7 Hazardous wastes are mainly produced in the office areas at all levels. In ）） 2020 IS AS FOLLOWS: 2020, Country Garden promoted green office and garbage sorting to encourage Group headquarters office area, 113 regional company office areas in real employees to produce less waste. As a result, wastes produced in 2020 is estate sector and 1,883 subordinate project companies' office areas, marketing significantly fewer than that in 2019. centers and non outsourcing staff canteens; The office areas of 16 regional companies in the hotel sector and their subordinate 52 project companies, 8 The sources of energy consumption data include fuel consumption of the ） as well as the office areas and operation areas of the business management HQ, regional offices, project offices and marketing centers, canteens for non- company and its subordinate 5 project companies. outsourced employees, offices and commercial spaces of other units as well as purchased power and heat. The statistics consists of data in related bills 2 THE SCOPE OF DATA COLLECTION OF ENVIRONMENT-RELATED KPIS of payment and administrative ledgers. The energy consumption coefficient IN） 2019 IS AS FOLLOWS: refers to the conversion factors provided by the International Energy Agency Office area of group headquarters, 81 regional offices in real estate sector, and China’s GB2589-2008T Comprehensive Energy Consumption Calculation and 1924 office areas, marketing centers, and non outsourcing canteens of Principles. project companies; In the hotel sector, there are 16 regional office areas of the company and its 50 affiliated project companies, as well as the office areas of 9 The data sources of LPG are the real estate sector and the hotel sector. Due the business management company and its 8 affiliated project companies. to） the continuous adjustment of energy structure in office areas at all levels, it was advocated that coal should be replaced by the LPG and natural gas. 3 THE SCOPE OF DATA COLLECTION OF ENVIRONMENT-RELATED KPIS Therefore, the consumption of LPG in 2020 increased significantly compared to IN） 2018 IS AS FOLLOWS: that in 2019. Office area of group headquarters, 82 regional offices in real estate sector, and 1822 office areas, marketing centers, and non outsourcing canteens of 10 The data sources of purchased heat are part of the regional offices ） project companies; In the hotel sector, there are 16 regional office areas of the northern China in the hotel sector and real estate sector. Due to the increase company and its 56 affiliated project companies. of operating projects in the hotel sector, the consumption of purchased heat in 2020 was higher than that in 2019.

4 One of the data sources of emissions, greenhouse gas emissions and direct） energy consumption is official vehicles. Country Garden strengthened 11 Total energy consumption = direct energy consumption + indirect energy ） the management of official vehicles in 2020 and encouraged regional offices consumption. to reduce the use of official vehicles. In addition, affected by the epidemic, Country Garden actively promoted online meetings and reduced official vehicle 12 Energy intensity = total energy consumption ÷ Country Garden’s 2020 ） travel, so the overall emission data was less than that in 2019. revenues.

5 The data sources of carbon dioxide (CO2) equivalent emissions (scope 1) 13 Water intensity = water consumption ÷ Country Garden’s 2020 revenues. ）） are the fuel consumption of all levels of office areas (group headquarters office area, office area and marketing centers of regional offices and project 14 The data sources of packaging carton usage are all levels of regional companies, non-outsourcing staff canteen, office area and business area of ） other sectors, etc.) and the fuel consumption of business vehicles. offices in the real estate sector and hotel sector, and the cartons are mainly used for the sorting and storage of office supplies.

6 The data sources of carbon dioxide (CO2) equivalent emissions (scope 2) are 15 The data source of solar power generation is the forest city project in ） purchased electric power and heat with statistics consisting of data in related the） real estate sector. Due to the COVID-19 pandemic, the operation time of bills of payment and administrative ledgers. Greenhouse gas emission factors Overseas Forest City projects is reduced, resulting in a sharp decline in solar of Chinese mainland power and Hong Kong Special Administrative Region refer power generation. to the Environmental Key Performance Indicators Reporting Guidelines issued by Hong Kong Stock Exchange; emission factors of Australian grid refer to the National Greenhouse Accounts Factors 2020 issued by Australian National Department of Environment and Energy; US grid emission factors refer to the EGRID Summary Table 2018 issued by United States Environmental Protection Agency; grid emission factors of other countries refer to the CO Emissions from Fuel Combustion issued by the International Energy Agency in 2020.

105 2020 Sustainability Report

LIST OF SOCIETY-RELATED PERFORMANCE INDICATORS B1. EMPLOYMENT

B1.1 NUMBER OF EMPLOYEES BY GENDER, EMPLOYMENT 2020 2019 2018 CATEGORY, AGE GROUP, AND NUMBER OF NUMBER OF EM- NUMBER OF PERCENTAGE PERCENTAGE PERCENTAGE REGION EMPLOYEES PLOYEES EMPLOYEES

Total 93,899 100% 101,784 100% 131,387 100%

Male 58,911 62.74% 63,082 61.98% 75,099 57.16% Gender Female 34,988 37.26% 38,702 38.02% 56,288 42.84%

30 47,396 50.48% 56,484 55.49% 68,817 52.38% ≤

31-40 36,841 39.23% 35,106 34.49% 43,803 33.34% Age 41-50 7,763 8.27% 8,191 8.05% 15,446 11.75%

50 1,899 2.02% 2,003 1.97% 3,321 2.53% ≥

Junior staff 75,024 79.90% 80,375 78.96% 109,273 83.17%

Middle man- Position 18,093 19.27% 20,588 20.23% 21,442 16.32% agement Senior man- 782 0.83% 821 0.81% 672 0.51% agement

Full-time 93,899 100% 101,784 100% 131,387 100%

Status Part-time 0 0% 0 0 0 0

Others 0 0% 0 0 0 0

Chinese 92,579 98.59% 99,197 97.46% 129,054 98.22% Mainland

Hong Kong SAR, Region Macao SAR and 34 0.04% 38 0.04% 41 0.03%

Taiwan Province Overseas 1,286 1.37% 2,549 2.50% 2,292 1.75%

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LIST OF SOCIETY-RELATED PERFORMANCE INDICATORS B1. EMPLOYMENT

B1.2 TURNOVER RATIO BY GENDER, EMPLOYMENT 2020 2019 2018 CATEGORY, AGE GROUP AND NUMBER OF EM- NUMBER OF EM- NUMBER OF REGION PERCENTAGE PERCENTAGE PERCENTAGE PLOYEES PLOYEES EMPLOYEES Number of Employ- 7,082 100% 8,503 100% 8,705 100% ees Resigned Percentage of Employ- 17.58% 16.80% 14.5% ees Resigned

Male 5,136 72.52% 6,074 71.43% 6,170 70.9% Gender Female 1,946 27.48% 2,429 28.57% 2,535 29.1%

30 3,416 48.23% 4,388 51.61% 4,536 52.1% ≤

31-40 3,305 46.67% 3,652 42.95% 3,746 43.0% Age 41-50 336 4.75% 412 4.85% 398 4.6%

50 25 0.35% 51 0.60% 25 0.3% ≥

Junior staff 5,038 71.14% 6,119 71.96% 6,404 73.5%

Middle man- Position 1,990 28.10% 2,324 27.33% 2,258 26.0% agement Senior man- 54 0.76% 60 0.71% 43 0.5% agement Chinese Main- 6,701 94.62% 7,781 91.51% 8,045 92.4% land

Hong Kong SAR, Region Macao SAR and 11 0.16% 19 0.22% 16 0.2%

Taiwan Province Overseas 370 5.22% 703 8.27% 644 7.4%

NOTES ON EMPLOYMENT KPIS: (15) Total employee turnover ratio = number of voluntary turnover /(total number of employees at the end of the period + 2020 annual turnover)

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B2 HEALTH AND SAFETY

HEALTH AND SAFETY 2020 2019 2018

Number of workers injured on duty 2 10 11 B2.1 Number of workers injured or dead on duty Number of workers dead on duty 0 0 0

B2.2 Number of workday lost

Number of workdays lost 818.5 1,886.5 - due to work-related injuries

B3 DEVELOPMENT AND TRAINING

DEVELOPMENT AND TRAINING 2020

B3.1 Percentage of em- Total Percentage of employees who have received training 100% ployees who have received training broken down by By gender - Percentage of male employees who have 63% gender and category received training

By gender - Percentage of female employees who have 37% received training By category - Percentage of senior management who have 1% received training

By category - Percentage of middle management who 19% have received training

By category - Percentage of grassroot employees who 80% have received training

B3.2 Training hours broken Average training hours received by employees (hour) 34.6 down by gender and category By gender - Average training hours received by male 34.7 employees (hour)

By gender - Average training hours received by female 34.3 employees (hour)

By category - Average training hours received by senior 127.8 management (hour)

By category - Average training hours received by middle

40.0

management (hour) By category - Average training hours received by grass- 32.3 root employees (hour)

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B3 DEVELOPMENT AND TRAINING

DEVELOPMENT AND TRAINING 2020 2019 2018

Total number of employees who have received 129.70 101.42 - training (10,000 person times Other Employee Develop- ）

ment and Training Figures 96.7 97.2 93.5 Satisfaction Rate (point)

NUMBER OF B5 SUPPLY CHAIN MANAGEMENT 2020 2019 B5.1 NUMBER OF SUP- PLIERS BY REGION NUMBER OF NUMBER OF TOTAL NUMBER OF TOTAL NUMBER PERCENTAGE PERCENTAGE MATERIAL SUPPLIERS ENGINEERING SUPPLIERS SUPPLIERS OF SUPPLIERS

Chinese Mainland 10,014 8,719 18,733 77.29% 16,100 83.76%

Hong Kong SAR, Macao SAR, and Taiwan 47 275 322 1.33% 90 0.47% Province

Overseas 2,406 2,777 5,183 21.38% 3,032 15.77%

Total 12,467 11,771 24,238 100% 19,222 100%

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B7 ANTI-CORRUPTION

ANTI-CORRUPTION 2020 2019

B7.1 Number of legal Number of corruption cases filed or closed 0 0 cases filed against the Company and its employees regarding corruption Number of cases ruled as bribery, extortion, fraud, money laundry, etc 0 0 during the reporting period

Lawsuit- corruption charges against HQ or regional HQ employees 0 0 (whether convicted or not)

Lawsuit- closed anti-competition charges against HQ or regional HQ 0 0 employees (whether convicted or not)

B7.3 Anti-corrup- Number and percentage of board members and senior executives 100% 100% tion training for taking anti-corruption training board members and employees

Number and percentage of board members and senior executives 100% 100% taking anti-corruption training

Number and percentage of employees who signed commitment on 100% 100% anti-corruption policies

Number and percentage of policies board members and senior exec-

100% 100%

utives who signed commitment on anti-corruption

110 Country Garden Holdings Company Limited

B8 COMMUNITY INVESTMENT

B8.2 RESOURCES MOBILIZED UNIT INVESTMENT IN 2020

Guangdong Poverty Alleviation Day 10000 RMB 68,000

Anti-Covid-19 Fund 10000 RMB 20,00O

Confucius Fund 10000 RMB 10,000

Donations Huiyan Education Fund 10000 RMB 1,000

Dunhuang Research Institute 10000 RMB 900

Chaozhou City 10000 RMB 1,000

Guoqiang Foundation of Shunde District 10000 RMB 1,000

Other Community Investment and Charity Investment 10000 RMB 59,874.82

Total 10000 RMB 161,774.82

Total 100 million RMB 16.18

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APPENDIX III: POLICIES, LAWS, AND REGULATIONS

ESG INDICATORS LAWS AND REGULATIONS INTERNAL POLICIES

Environmental Protection Law of the People's Republic of China Country Garden Employee Performance Ap- Category A1: Emissions Water Pollution Prevention and Control Law of the People's Republic praisal Measures Category A2: Use of resources of China Country Garden Remuneration Management Sys- Category A3: Environment and Law of the People's Republic of China on the Prevention and Control tem of Solid Waste Pollution Measures for Renewable Supplier Entry and Ap- Natural Resources Law of the People's Republic of China on Prevention and praisal Control of Pollution from Environmental Noise Regulating Mechanism of ESG Working Commit- Regulations of the People’s Republic of China on the Prevention of tee of Country Garden Pollution Damage to the Marine Environment by Land-Sourced Pollutants Directory of National Hazardous Wastes Administrative Measures for Hazardous Waste Transfer Forms The Work Plan for Greenhouse Gas Emission Control during the 13th Five-Year Plan Period Land Administration Law of the PRC

Labor Law of the People's Republic of China Country Garden Employee Performance Appraisal Category B1: Employment Contract Law of the People's Republic of China Measures Employment Promotion Law of the People's Republic of China Country Garden Remuneration Management Sys- Social Insurance Law of the People's Republic of China tem Provisions on Minimum Wages New Recruit and Redeployment Management Provisions on Prohibition of Child Labor Attendance and Personal Leave Management Employee Handbook Employment Management

Category B2: Labor Law of the People's Republic of China Production Safety Measures and Operating In- Health and Safety Law of the People's Republic of China on the Prevention and struction Control of Occupational Diseases Construction Site Safety Measures Work Safety Law of the People's Republic of China Construction Security Incident Emergency Fire Prevention Law of the People's Republic of China Mechanism Emergency Response Law of the People's Republic of China Novel Coronavirus Pneumonia Control Hand- Report on Production Safety Accident and Regulations of Inves- book for Employees tigation and Treatment Operation and Management System of Country Interim Provisions on the Investigation and Control of Safety Ac- Garden (Trial Version of 2020) cidents Regulation on Work-Related Injury Insurance Provisions on the Supervision and Administration of Occupa- tional Health at Work Sites The Administrative Regulations on the Work Safety of Construc- tion Projects

Occupational Disease Classification and Catalog

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ESG INDICATORS LAWS AND REGULATIONS INTERNAL POLICIES

Employee Handbook Category B3: -- Management System on Training of Country Garden Development and Training Tutor-based Management System The Ten Key Qualities of Excellent Talent of Country Garden

Labor Law of the People's Republic of China Commitment on the Payment of Wages for Migrant Work- Category B4: Provisions on the Prohibition of Using Child Labor ers in Full and on Time Labor Standards Law of the People's Republic of China on the Protection of Mi- Employee Handbook nors New Recruit and Redeployment Management Measures on Public Holidays and National Annual Festivals and Labor Relation Management Memorial Days Attendance and Personal Leave Management Regulation on Paid Annual Leave of Employees Country Garden Remuneration Management Sys- Implementation Measures for Paid Annual Leave for Employees tem of Enterprises Special Rules on the Labor Protection of Female Workers Accountability Measures for Violations of Rule and Regulation on Population and Family Planning of Guangdong Regulations by Country Garden's Employees Province

The Bidding Law of the People's Republic of China Notice on General Contractor Selection Category B5: Project Bidding Contract Management Measures Supply Chain Management Project Supplier Evaluation Measures Constructor Post-Evaluation System General Contractor Management Measures Supplier Integrity Agreement Entry Threshold for Material Suppliers Notice on the Country Garden Supplier Short-listing Conditions and Standard Recommendation Process Supplier Management Process Supplier Post-Evaluation System Supplier Penalty Measures Sourcing Center’s Internal Regulations on Interactions with Suppliers Marketing and Packaging Supplier Post-Evaluation Handbook Notice on the Implementation of the Post-Marketing Material Evaluation Plan Notice on the Implementation of the 2018 Supplier Eval- uation Notification Letter on Strengthening the Quality Control of Materials DesignatedMaterial ProcurementMan-agementMea- sures Regulations for Suspending or Canceling Supplier Qual- ifications and Supplier Recommendation Country Garden Supplier Integrity Requirements Renewable Energy Supplier Registration and Appraisal Regulations Supplier Personal Information Protection Policy

113 2020 Sustainability Report

ESG INDICATORS LAWS AND REGULATIONS INTERNAL POLICIES

Securities Law of the People's Republic of China Notice on Avoiding Unmatched Products and Eliminating Category B6: Anti-Unfair Competition Law of the People's Republic of China Large-scale Complaints Product Responsibilities Interim Provisions on Banning Commercial Bribery Reaffirmation of the Implementation of the Pre-sale Policy Anti-Monopoly Law of the People's Republic of China in Strict Accordance with State Regulations Law of the People's Republic of China on the Protection of Consum- Guidelines for the Revision of the Public Letter on Integrity er Rights and Interests of the Sales Center Cybersecurity Law of the People's Republic of China Guidelines on Sand Table Display of Domestic Property Patent Law of the People's Republic of China Project Copyright Law of the People's Republic of China Brand Promotion Regulations Regulation on Computers Software Protection Project Safety Measures Advertising Law of the People's Republic of China Country Garden Engineering Safety Standardization Dia- Trademark Law of the People's Republic of China grams Product Quality Law of the People's Republic of China Pre-sale Customer Risk Screening Guidelines Urban Real Estate Administration Law of the People's Republic of Pre-sale Customer Risk Screening Form China Customer Complaint Handling Guidelines Construction Law of the People's Republic of China Project Quality Management Handbook Regulation on the Quality Management of Construction Projects Material Acceptance Management System Regulation on the Administration of Development and Operation of Emergency Management System Urban Real Estate Information Reporting Management System Code for Fire Protection Design of Building GB50016-2014 Prototype First Management System Guiding Opinions of the General Office of the State Council on Vigor- Intellectual Property Right Handbook ously Developing Prefabricated Buildings Intellectual Property Right Management Procedure Standard for Assessment of Prefabricated Building GB/T51129-2017 Intellectual Property Right Protection Procedure Regulation on Realty Management Intellectual Property Right Reward Management Measures Standard for Acceptance of Construction Quality of Steel Structures Country Garden Work Safety Management System GB50205-2001 Handbook for Safe and Civilized Operation Measures of Code for Design of Store Building JGJ48-2014 Country Garden Standard for Urban Residential Area Planning and Design GB50180- Operational Risk Management Measures 93 (2016 Version) Country Garden Information Security Management Mea- Green Building Evaluation Standard GB/T 50378-2019 sures Technical Standard for Nearly Zero Energy Buildings GB/T 51350- DataSecurityMan-agementSystemof CountryGarden 2019 Guidelines on Customer Data Platform and Smart Informa- General Data Protection Regulation (GDPR) tion Masking and Outbound Platform Green Construction Evaluation Standard Recommendations for the Transformation of Urban Plan- ning and Development in the Post-epidemic Era Personal Information Protection Policy Template Data Security Management System of Country Garden Group Design Guidelines for Country Garden Green Buildings Green Hotels Management Standards

Company Law of the People's Republic of China Country Garden Employee Code Category B7: Anti-Money Laundering Law of the People's Republic of China Country Garden Regulation on Management of Conflict of Anti-corruption Anti-Unfair Competition Law of the People's Republic of China Interests of Employees Interim Provisions on Banning Commercial Bribery Country Garden Regulation on Management of Employee On-Duty Behavior Country Garden Measures for Pursuing Responsibilities for

Violations of Regulations and Discipline by Group Employees Country Garden Supplier Integrity Instruction Country Garden Integrity Agreement

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APPENDIX IV: INDEX OF HKEX ESG REPORTING GUIDE

ESG INDICATORS CHAPTER NOTE A1 General Dis- Information on: closure the policies; and compliance with relevant laws and regu- 8.1 Environment Management lations that have a significant impact on the issuer relating to air and greenhouse gas emissions, discharg- es into water and land, and generation of hazardous and non-hazardous waste

A1.1 The types of emissions and respective emissions data Appendix II: Sustainability KPIs

A1.2 Greenhouse gas emissions in total and, where appropriate Appendix II: Sustainability KPIs intensity

A1.3 Total hazardous waste produced and, where appropriate, Appendix II: Sustainability KPIs intensity

A1.4 Total non-hazardous waste produced and, where appro- Appendix II: Sustainability KPIs priate, intensity

A1.5 Description of measures to mitigate emissions and results achieved 8.4 Green Operation

A1.6 Description of how hazardous and non-hazardous wastes are handled, reduction initiatives and results achieved 8.4 Green Operation

Policies on the efficient use of resources, including ener- A2 General Dis- gy, water, and other raw materials 8.2.4 Sustainable Development Building Strategy closure

A2.1 Direct and/or indirect energy consumption by type and Appendix II: Sustainability KPIs intensity

A2.2 Water consumption in total and intensity Appendix II: Sustainability KPIs

A2.3 Description of energy use efficiency initiatives and results achieved 8.6 Green Office

A2.4 Description of whether there is any issue in sourcing water that is fit for purpose, water efficiency initiatives and 8.4 Green Operation

results achieved

115 2020 Sustainability Report

ESG INDICATORS CHAPTER NOTE A2.5 Total packaging material used for finished products and, Appendix II: Sustainability KPIs if applicable, with reference to per unit produced

Policies on minimizing the issuer's significant impact on A3 General Dis- the environment and natural resources 8.8 Biodiversity Protection closure

A3.1 Description of the significant impacts of activities on the environment and natural resources and the actions tak- 8.8 Biodiversity Protection en to manage them

B1 General Dis- Information on: closure the policies; and compliance with relevant laws and 9.1.1 Fair Employment regulations that have a significant impact on the issuer relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare

B1.1 Total workforce by gender, employment type, age group, Appendix II: Sustainability KPIs and geographical region

B1.2 Employee turnover rate by gender, age group, and geographical region

Information on: B2 General Dis- the policies; and compliance with relevant laws and 9.2.2 Occupational Health and Safety closure regulations that have a significant impact on the issuer relating to providing a safe working environment and protecting employees from occupational hazards

B2.1 Number and rate of work-related fatalities Appendix II: Sustainability KPIs

B2.2 Lost days due to work injury Appendix II: Sustainability KPIs

B2.3 Description of occupational health and safety measures adopted, how they are implemented and monitored 9.2.2 Occupational Health and Safety

Policies on improving employees' knowledge and skills B3 General Dis- for discharging duties at work. Description of training 9.3 Talent Cultivation

closure activities

116 Country Garden Holdings Company Limited

备注 ESG INDICATORS 本报告载有相关资料的部分CHAPTER NOTE B3.1 Percentage of employees trained by gender and employ- Appendix II: Sustainability KPIs ee category

B3.2 Average training hours completed per employee by gen- Appendix II: Sustainability KPIs der and employee category

B4 General Dis- Information on: 9.1.1 Fare Recruiting Process closure the policies; and compliance with relevant laws and regulations that have a significant impact on the issuer relating to preventing child and forced labour

B4.1 Description of measures to review employment practic- Not applicable During the reporting period, es to avoid child and forced labor no case of child labor and forced labor has been reported and we have taken multiple measures to prevent such practice from happening.

B4.2 Description of steps taken to eliminate such practices Not applicable During the reporting period, when discovered no case of child labor and forced labor has been reported and we have taken multiple measures to prevent such practice from happening.

B5 General Dis- Policies on managing environmental and social risks of 7.4.2 Supply Chain Responsibility closure the supply chain

B5.1 Number of suppliers by geographical region Appendix II: Sustainability KPIs

B5.2 Description of practices relating to engaging suppliers, 7.4.2 Supply Chain Responsibility number of suppliers where the practices are being implemented, how they are implemented and monitored

B6 General Dis- nformation on: 7.3.1 Responsible Marketing closure the policies; and compliance with relevant laws and regulations that have a significant impact on the issuer relating to health and safety, advertising, labeling, and privacy matters relating to products and services provided and methods of redress

B6.1 Percentage of total products sold or shipped subjects to Not Applicable Not applicable, for there were recalls for safety and health reasons no recall of products and ser-

vices that had a great impact on the Group’s operation

117 2020 Sustainability Report

ESG INDICATORS CHAPTER NOTE B6.2 Number of products and service-related complaints re- 7.3.2 Keep Customer Satisfied ceived and how they are dealt with

B6.3 Description of practices relating to observing and pro- 6.2.5 IPR Protection tecting intellectual property rights

B6.4 Description of quality assurance process and recall pro- Not Applicable Product recall is not rele- cedures vant to the Country's operation. During the reporting period, no product recall has occurred due to poor house quality.

B6.5 Description of consumer data protection and privacy pol- 7.3.3 Information Security and Privacy icies, how they are implemented and monitored Protection

B7 General Dis- Information on: 6.2.4 Ethics closure the policies; and compliance with relevant laws and regulations that have a significant impact on the issuer relating to bribery, extortion, fraud and money laundry

B7.1 Number of concluded legal cases regarding corrupt Appendix II: Sustainability KPIs practices brought against the issuer or its employees during the reporting period and the outcomes of the cases

B7.2 Description of preventive measures and whistle-blowing 6.2.4 Ethics procedures, how they are implemented and monitored

B8 General Dis- Policies on community engagement to understand the Country Garden Gives Back-Shared Harmony closure needs of the communities where the issuer operates and to ensure its activities take into consideration the communities' interests

B8.1 Key areas of contribution (e.g. education, environmental Country Garden Gives Back-Shared Harmony

concerns, labour needs, health, culture, sports) B8.2 Resources contributed (e.g. money or time) to the key ar- Country Garden Gives Back-Shared Harmony eas

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APPENDIX V: GRI STANDARDS INDEX—CORE OPTION

GRI STANDARDS DETAIL REFERENCE NOTE

GENERAL DISCLOSURES

ORGANIZATIONAL PROFILES

102-1 Name of organization 1 About the Report

102-2 Activities, brands, products and services 2 What is Country Garden

102-3 Location of headquarters Not Applicable

102-4 Location of operations Not Applicable

102-5 Ownership and legal form Not Applicable

102-6 Markets served 2 What is Country Garden

102-7 Scale of the organization 2 What is Country Garden

102-8 Information on employees and other workers Appendix II: Sustainability KPIs

102-9 Supply chain 7.4.2 Supply Chain Responsibility Significant changes to the organiza- 102-10 Not Applicable tion and its supply chain

102-11 Description of action with discretion 2 What is Country Garden

102-12 Accord that the company agrees to Not Applicable

102-13 Membership of associations Not Applicable

STRATEGY AND ANALYSIS

102-14 Statement by senior decision-makers 2020 Annual Message ETHICS AND INTEGRITY

Values, principles, standards, and 102-16 norms of behaviors 2 What is Country Garden

119 2020 Sustainability Report

GRI STANDARDS DETAIL REFERENCE NOTE GENERAL DISCLOSURES

GOVERNANCE

102-18 Governance structure 6.2.2 Responsibilities of the Board STAKEHOLDER ENGAGEMENT

102-40 List of stakeholder groups 6.3.4 Stakeholder Communication

102-41 Collective bargaining agreements Not Applicable

102-42 Identifying and selecting stakeholders 6.3.4 Stakeholder Communication

102-43 Ways of stakeholder communication 6.3.4 Stakeholder Communication Key topics and concerns raised by stakeholders and 102-44 the institution’s response 6.3.4 Stakeholder Communication

REPORTING PRACTICE

102-45 Entities included in the consolidated financial statements Not Applicable

102-46 Defining report content and topic boundaries 1 About the Report 102-47 List of important issues 6.3.5 Strategic Management on Key Issues

102-48 Reasons for restatements of information 1 About the Report

102-50 Changes in reporting 1 About the Report

102-50 Reporting period 1 About the Report 102-51 Date of most recent report Not Applicable

102-52 Reporting cycle

1 About the Report 102-53 Contact point for questions regarding the report 1 About the Report

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GRI STANDARDS DETAIL REFERENCE NOTE GENERAL DISCLOSURES

REPORTING PRACTICE

Claims of reporting in accordance with the GRI 102-54 Standards 1 About the Report 102-55 GRI content index Annex V: GRI content index--Core Items

102-56 External assurance Not Applicable

MANAGEMENT APPROACH

Explanation of the important issues and their 103-1 boundary 6.3.5 Strategic Management on Key Issues

103-2 Management approach and its components 6.2 Corporate Governance

103-3 Evaluation of management approaches 6.2 Corporate Governance ECONOMIC STANDARDS

ECONOMIC PERFORMANCE

Management Approaches 2 What is Country Garden 201-1 Direct economic value generated and distributed 2 What is Country Garden Proportion of senior management hired from the 202-2 Not Applicable local community

INDIRECT ECONOMIC IMPACT

Management Approach Disclosure 10 Country Garden Gives Back-Shared Harmony Impacts due to infrastructure investment and re- 203-1 lated supporting services 10 Country Garden Gives Back-Shared Harmony

PROCUREMENT PRACTICES

Management Approach Disclosure 204-1 Proportion of spending on local suppliers Not Applicable

121 2020 Sustainability Report

GRI STANDARDS DETAIL REFERENCE NOTE ECONOMIC STANDARDS

ANTI-CORRUPTION

Management Approach Disclosure

Confirmed incidents of corruption and actions 205-3 Not Applicable taken on them

ANTI-COMPETITIVE BEHAVIORS

Management Approach Disclosure

Legal actions on anti-competitive behavior, an- 206-1 Not Applicable ti-trust, and monopoly practices ENVIRONMENTAL ISSUES

ENERGY

Management Approach Disclosure Appendix II: Sustainability KPIs

302-1 Energy consumption within the organization Appendix II: Sustainability KPIs

302-3 Energy intensity Appendix II: Sustainability KPIs

G4-CRE3 Energy intensity of buildings Not Applicable

WATER

Management Approach Disclosure

303-1 Total volume of water usage by source Appendix II: Sustainability KPIs

G4-CRE2 Water intensity of buildings Not Applicable

EMISSION

Management Approach Disclosure Appendix II: Sustainability KPIs 305-1 Direct (Scope 1) GHG emissions Appendix II: Sustainability KPIs

122 Country Garden Holdings Company Limited

GRI STANDARDS DETAIL REFERENCE NOTE ENVIRONMENTAL ISSUES

EMISSION

305-2 Indirect (Scope 2) GHG emissions from energy con- Appendix II: Sustainability KPIs sumption

G4-CRE3 Greenhouse gas emissions intensity from buildings Not Applicable

SEWAGE AND WASTE

Management Approach Disclosure

306-2 Total weight of waste by categories and ways of dis- Appendix II: Sustainability KPIs posal

ENVIRONMENTAL COMPLIANCE

307-1 Non-compliance with environmental laws and regu- Not Applicable No major violations of lations environmental laws and regulations during the reporting period

LAND DEGRADATION, CONTAMINATION, AND REMEDIATION

G4-CRE5 Land remediated and in need of remediation for the 8.8 Bio-Diversity Protection existing or intended land use, according to applicable legal designations SOCIAL ISSUES

EMPLOYMENT

Management Approach Disclosure Appendix II: Sustainability KPIs

401-1 New employee hires and employee turnover Appendix II: Sustainability KPIs

OCCUPATIONAL HEALTH AND SAFETY

Management Approach Disclosure Appendix II: Sustainability KPIs

403-2 Types and frequency of work injury, occupational Appendix II: Sustainability KPIs

diseases, lost days due to work injury, absence rate and work-related fatalities

123 2020 Sustainability Report

GRI STANDARDS DETAIL REFERENCE NOTE SOCIAL ISSUES

TRAINING AND EDUCATION

Management Approach Disclosure Appendix II: Sustainability KPIs

404-1 Average hours of training received by each of staff Appendix II: Sustainability KPIs

EMPLOYEE DIVERSITY AND EQUAL OPPORTUNITIES

Management Approach Disclosure 9.1.2 Diversity and Inclusion

405-1 Diversity of governance bodies and employees 9.1.2 Diversity and Inclusion

LOCAL COMMUNITIES

Management Approach Disclosure 10 Country Garden Gives Back-Shared Harmony

413-1 Operations with local community engagement, im- 10 Country Garden Gives Back-Shared Harmony pact assessments, and development programs

CUSTOMER HEALTH AND SAFETY

Management Approach Disclosure 7.3 Dedicated Service

413-1 Incidents of non-compliance concerning the health Not Applicable No such incidents during and safety impacts of products and services the reporting period

CUSTOMER PRIVACY

Management Approach Disclosure 7.3.3 Information security and privacy protection

419-1 Number of substantiated complaints concerning Not Applicable No such complaints during breaches of customer privacy and losses of cus- the reporting period

tomer data

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GRI STANDARDS DETAIL REFERENCE NOTE SOCIAL ISSUES

APPEAL SYSTEM

Management Approach Disclosure 7.3.2 Customer Satisfaction Laws and Regulation Compliance

419-1 Non-compliance with laws and regulations in the It is the basis principle of social and economic area 6.2.1 Operational Compliance our employees and suppliers to comply with laws and regulations and there is no such violations during the reporting period.

PRODUCT AND SERVICE LABELING

G4-CRE8 Types and number of sustainability certification,

rating and labeling schemes for new construction, 8.2.2 Sustainable Development Building management, occupation, and redevelopment Certification

125 2020 Sustainability Report

APPENDIX VI: COMMENTS AND FEEDBACK

To report violations of professional ethics by Country Garden em- For more details about the Guoqiang Foundation, please visit: ployees or business units, please contact the Risk Control, Audit, http://www.guoqiangpwf.org/index.html and Supervision Center: [email protected] For comments on this report, please contact the Committee for Environment, Social and Governance Committee: For product safety and quality, service quality and sales, please [email protected] contact the Customer Relationship Management Department: 400-8919-338 For more Country Garden Sustainability Reports, please visit: https://bgy.com.cn/csr.aspx?type=34 For investor relations, please contact the Investor Relations De- partment: [email protected]

126 Country Garden Holdings Company Limited